There is nothing wrong with business owners wanting the newest equipment, but this isn’t always the most practical choice. This is especially true when it comes to equipment leasing. Assuming the borrower doesn’t opt to buy the equipment, he or she will return it used by the end of the lease term anyway. Choosing to lease used equipment has several benefits besides cost savings. We highlight just a few of them below.
Technical Support More Readily Available
It isn’t uncommon with new equipment leasing for the manufacturer or company leasing the item to not know much more about it than the customer does. Basically, everyone learns the ins and outs of the equipment together. This is never an issue with used equipment since more people have experience using it. There should be no shortage of online forums, printed manuals, telephone technical support, and other options for troubleshooting a problem with the used equipment.
Higher Profits with Infrequently Used Equipment
Used equipment leasing can be an excellent choice when a company needs the piece of equipment on hand but doesn’t need to put it into service very often. By paying less for the equipment lease, the business will see a return on investment sooner compared to new equipment leasing. However, the person leasing the used equipment should ensure it has been well-maintained to avoid spending a lot of money on repairs.
Technology Changes Quickly
Sure, it’s nice to have the latest model of equipment available for customers and others to see. The downside is that the equipment depreciates quickly, and the manufacturer may even release a newer model before the end of the lease term. That leaves the business owner making large monthly payments for equipment that has already become outdated. Leasing used equipment saves money in addition to lowering risk.
Need an Equipment Leasing Loan?
Perhaps you’re just looking into equipment leasing and are not sure how to finance what you need. Magis Funding is here to help. Please contact us today to learn about this and other financing options for small business owners.