At Lease Consultants, we understand the challenges inherent with the sales process. Businesses rely on equipment and technology every day to operate and grow. However, there are several factors at play when a business is deciding to purchase equipment. Budgetary constraints, uncertain market conditions, or other financial considerations can hinder the progress of a sale.
Financing can help overcome these factors, as well as many others. Leasing gives all businesses access to equipment that they need, all while that equipment pays for itself. Still not sure? Explore the impact financing can have for your customers, to help close the deal:
1. Improves Cash Flow: New equipment either saves money on current expenses or increases income. Either way, a lease allows the machine to earn its keep as the payments are made. Why pay in full up front and limit your earning potential?
2. Preserves credit: Financing the equipment purchase means bank lines and other lending sources are free to finance business expansion. New or fast-growing businesses especially benefit from establishing a new credit source.
3. Overcomes budgetary restrictions: Particularly in large companies, a manager may have the authority to commit to operating expenses, but lack the authorization to approve a capital expenditure. Financing works within the customer’s budget to ensure they can get the equipment the business needs.
4. Possible tax benefits: Some customers will benefit by reporting lease payments as a monthly expense rather than an outright purchase for tax purposes. The equipment may qualify for certain allowed deductions under Section 179. Customers should speak to their tax professional to find out how financing will best benefit their business.
5. Predictable Budgeting: A fixed monthly payment means it’s easier to forecast cash flows and manage business finances. This allows your customer to plan and allocate their financial resources more efficiently.
Bottom Line: More than 80% of US businesses lease equipment. In addition to the benefits already considered, some customers have special situations that can be addressed with creative lease programs. It’s no wonder that this sales tool is so widely utilized across all business sectors in the US.