5 Things To Know Before Signing Your Next Equipment Finance Agreement 

Whether you are a newly launched small business or a reputable, well-established company, equipment leasing is a sound financial option that can help promote your business’s growth. Among several other benefits, lease financing enables your business to stay competitive while conserving your working capital and retaining your cash flow. This Envision Capital Group blog post will help you identify key items to consider before signing your next equipment finance agreement.

The Top 5 Are…

1. Determine Your Equipment Needs: Your equipment needs could be drastically different depending on what you hope to achieve, so it’s important to provide as much information as possible to your equipment leasing company. Depending on its capabilities and industries of expertise, your equipment leasing company can steer you in the right direction and provide valuable insight. 

2. Choose The Right Equipment Leasing Company: Be sure to choose a leasing company that has experience in your industry and that specializes in the equipment you would like
   to acquire. Additionally, the company should be aware of potential industry changes and/or challenges that can impact your business, plus be able to recommend the most appropriate solution(s) to address them. 

3. Give Your Credit A Health Checkup: Most equipment leasing companies require strong business credit or Paydex score to obtain an equipment lease. Your Paydex score is Dun & Bradstreet’s unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences report to D&B by various vendors. 

4. Understand How Leasing Affects Your Financials: Leasing has different implications on your balance sheet than a business loan. When you acquire a traditional loan from a bank to make purchases for your business, the loan is considered a debt on your balance sheet. However, when you choose to lease your equipment purchases, the lease can actually be reflected as an operating expense on your income statement. This can be very helpful when it comes time to do your taxes, not to mention make your business’ balance sheet look more attractive throughout the year. 

5. Look At The Tax Benefits: Leasing business equipment can provide your company with substantial tax advantages that you can’t achieve when you pay cash, or finance through a traditional bank. There are major tax benefits to financing equipment depending on the type of lease you decide to choose. 

Business owners like you are facing numerous challenges and need to be cost-conscious when it comes to business spending. When it comes time to select a finance company, make sure you choose one that offers competitive rates and terms, answers all your questions thoroughly, and understands your unique business equipment needs.

About Envision Capital Group 

Envision Capital Group is a technology-driven financing company that provides business owners with fast, hassle-free solutions to fuel their growth and success. The company specializes in small business loans, equipment financing, commercial financing, and vendor financing.