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Renter's Guide: Leasing a Boom Lift
Arranging a Boom Lift for Lease
The primary advantage of leasing a boom lift is that it allows you to acquire assets with minimal initial expenditures. Because equipment leases rarely require a down payment, you can obtain the goods you need without significantly affecting your cash flow.
Leasing equipment is a great way to use the latest technology and guard against obsolescence. Operating lease: Terms for these leases can be from 1 to 5 years. These leases offer low monthly payments and can be converted to fair market purchases at any time.
Advantages of Leasing a Lift
Capital conservation
Leases in today's financial climate can often be obtained with little or even no money down. When borrowing to make a purchase, cash out-of-pocket is required for a down payment -- money that can be used for other important business needs such as marketing, employee salaries, research, etc.
Less Documentation
Leases usually require less financial documentation than bank loans, meaning they require less preparation and are easier to secure. Some banks want two to three years of detailed credit history, while leases often require only six months of history or less.
Low Down Payment
Because you can get into a lease with little or no down payment, it's likely that you can get more equipment or higher quality equipment than you can when buying outright or borrowing.
Low Maintenance Costs
Even new equipment can break down. Most leased equipment is maintained and often even repaired without charge. This can take a load off your mind and save you considerably in case of major repairs.
Tax Write-off
Another financial benefit of leasing equipment is that your lease payments can usually be deducted as business expenses on your tax return, reducing the net cost of your lease. - Easier Qualification. In addition, leases are usually easier to obtain and have more flexible terms than loans for buying equipment. This can be a significant advantage if you have bad credit or need to negotiate a longer payment plan to lower your costs.
New Technology/Obsolescence
If you use your lease to attain items that are subject to becoming technologically outdated in a short period of time, such as computers or other high-tech equipment, a lease passes the burden of obsolescence onto the lesser, as you are free to lease new, higher-end equipment after your lease expires.
Disadvantages of Leasing Lift
Leasing business equipment has two main disadvantages: overall cost and lack of ownership.
Another downside to leasing is that you are obligated to make payments for the entire lease period even if you stop using the equipment. Some leases give you the option to cancel the lease if your business changes directions and the equipment you leased is no longer necessary, but large early termination fees always apply.
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