If you have started your own business, then you would like to buy all the necessary equipment in order to ensure a smooth and efficient working. But, the scenario changes when the price of certain equipments is too high. So, what to do in these kind of scenarios?
Well, there are only a couple of options to choose from, one is that you can purchase the item and the second option is that you can lease it. I understand the issues that are involved with the leasing process, but if you do not have any other option, then you have to go with this one. Leasing is not that bad as people would make it in their talks. If you know the concept and use it appropriately, you will not feel that expensive.
Leasing: The basic concept with the leasing is, when you get a certain item on lease, then you have to pay the monthly payments in the form of rent to use the item. You can negotiate with the owner regarding the price. There is no rate of interest on the borrowed money, so you will just have to pay the money you and the owner have agreed upon. There are certain benefits of leasing an item and there are some drawbacks as well.
One of the important benefits of leasing something is that you do not have to go through a bank to access your money to pay for the equipment over a time. You will be dealing directly with the individual or the company that own the product. This process is totally different and hassle free. That was all about the benefits of leasing, now let's discuss about the drawbacks. You will have to pay a monthly rent regardless of how much you use the equipment. You can never own the equipment because the money you pay every month is the rent. If you are fine with this concept, then you can get the equipments for your business on a lease.
Lease Purchase Or Financing: The second method is a lease purchase or financing. This method is similar to lease, but has some additional features as well. In this method, you will have to pay the monthly payments on a loan. The good part is that when the loan ends, you will own the equipment. But in the whole process, you will pay an inflated amount every month due to the interest rates on the equipment.
But, after paying such inflated amounts every month, you can take a sigh of relief because you the owner of the product and you can use it according to your needs and convenience. You will always be presented with the two options. You can either pay the entire amount up front, and take the equipment to your workplace or buy it on the lease purchase. I will insist that you should choose the first option as it is better to pay the money right away and save from getting charged into the loan procedure.
Mortgage Leasing: The third method is to use the mortgage leasing. You can easily get the equipment from the seller by using this method. The concept of mortgage leasing is quite simple. When you want to get the equipment from another company, then basically you are asking them for more money so that you can easily buy the equipment.
The mortgage company will give you time to return the mortgaged amount and till then, they will own the equipment. Once you have paid all the mortgage, then you are the owner of the equipment. So, a mortgage payment is similar to lease payment, but a user has to pay for the concessions and as well as the equipment. So, these are the three methods of equipment leasing and financing. You can choose the best one according to your finances and needs.