Benefits of Equipment Financing
It is VGM Financial Service's goal that you have an alternative way to acquire new equipment. Some advantages of equipment financing listed below are worth exploring.
Conserve your cash flow and invest it elsewhere within your business.
A primary reason most businesses lease is to conserve cash. Leasing allows you to conserve cash that can be invested in your business, instead of in assets that depreciate. "Cash is King," is more than a catchy slogan. By leasing your equipment you leave your bank lines of credit available for use when you really need it. One rule of thumb; if something appreciates in value while in your possession, you should probably buy it; if it depreciates, you should rent or least it.
Leasing is proven way of acquiring productive equipment for business.
Eight out of ten companies in the United States choose leasing as a preferred method of equipment purchasing due to its distinct advantages. Businesses may choose to lease to take advantage of the tax benefits or to hedge against inflation.
Lease payments are designed to match your cash flow needs.
Payments are structured to match the cash flow needs of your business. Gradual payment structures, quarterly payment structures, even progress payments are handled within your lease without draining your cash position.
Leasing is the Total System Solution
Compared to a bank, leasing provides 100% financing, which can include your purchase, software, shipping, training, installation and other similar soft costs.
Lease payments are fixed for the entire life of the lease, which simplifies the budget process. Payments are not impacted by future rate fluctuations. In fact, they are guaranteed to stay the same.