How Can Equipment Leasing Benefit Different Industries?
Equipment is your company’s bread and butter, providing the means to generate profits, make customers happy and streamline your operations. The trick is knowing when to purchase additional equipment and how to finance it. This article can help you figure out the right steps to take for equipment leasing in your industry.
Trucking and Transportation Businesses
This industry encompasses many different businesses of varying sizes. Some trucking fleets have dozens of vehicles. Sometimes, semi-trucks are owned and operated individually. Transportation businesses also include vehicle repair shops and taxi companies.
The type of equipment leasing and financing required depends on the operations and the size of trucks needed. For local deliveries, box trucks may be sufficient. For long-haul, cross-country shipping with refrigerated containers, a larger financing investment is required.
Equipment loans are generally preferable for purchasing semi-trucks because of the lower interest rates and long operating life of trucks. That said, leasing offers several benefits for owner-operators or new transportation businesses, such as lower monthly payments and great tax benefits. Transportation companies can also lease diagnostic equipment, computer equipment and satellite tracking systems.
Many medical practices can benefit from having state-of-the-art technology. Any time technology is important for your business, equipment leasing is usually going to be the superior option. Leasing makes it easier to upgrade your systems every few years and stay up to date with new possibilities.
You can use loans and leases to get medical devices, diagnostic systems, patient equipment, special treatment systems and software, and other needs. Healthcare equipment financing is available for doctors, dentists, chiropractors, veterinarians and other medical professionals. Before applying, think about what type of equipment will have the biggest impact on your practice’s reputation and profits.
Few industries rely as much on equipment financing as construction. Whether your business mainly builds houses, offers home remodeling or handles larger commercial construction projects, you can get financing for equipment to match. The scale of these loans and leases is immense, providing funds for loaders, bulldozers, excavators, dump trucks and other types of heavy machinery.
Is equipment leasing or taking out a loan better for construction equipment? There are pros and cons to both options. Leasing is easier to qualify for and less expensive in the short term. Over time, however, you can save a lot of money with an equipment loan because of better interest rates.
Of course, loans also require a significant down payment. If you can get one comfortably, there’s nothing like the feeling of paying off equipment that you’re basically using for free decades later.