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Is There A Difference?
If your business primarily depends on the use of a wide array of equipment in order to come up with the products that you manufacture or even the services that you offer, you may need to come up with huge capital in order to answer your equipment needs. This may be quite overwhelming especially if you are a startup business and haven’t even breached your ROI. So what do you do?
You basically have two options other than purchasing equipment outright. These are equipment leasing and equipment financing. One common mistake of many individuals is they get to interchange these two terms. But there is a difference between these two. Let’s take a look at each one.
Equipment leasing is probably one of the most practical ways to secure equipment for your business at a minimal cost. It will allow you to use equipment that you need to sustain operations without having to initially spend so much for it. There are financing companies like Quick Fund that will provide you with the equipment for your business’ use, and all that you would have to do is to pay monthly rentals.
This will not transfer the ownership of the equipment to you by the end of the lease period; however, you will still be able to renew the lease depending on the provisions of the initial lease agreement. The terms of the lease would have to be agreed upon by both parties and everything should be stated in black and while. Make sure that there are no ambiguous terms so that both parties’ interests will be protected.
One thing that makes equipment leasing truly feasible is that the maintenance of the equipment lies with the owner and not with you. So you don’t have to worry about having to maintain the equipment. Of course, as long as you use it properly and according to the terms of the agreement, there is nothing for you to worry about.
Equipment financing on the other hand is similar to equipment leasing in a way that you would not be spending huge chunks of cash to get the equipment for your business’ usage. However, it differs on how this type of financing works.
With equipment financing, a financing company, such as Quick Fund, will grant you a loan for the purpose of securing equipment. The catch is that, the collateral that you will be using for the loan is the equipment itself. Yes, this would still entail small and reasonable payments every month, but in the event that you fail to meet your obligations, the equipment will be sequestered by the financing company.
Both equipment leasing and equipment financing can be provided to you by lending companies like Quikfund. You just need to weigh your options so that you can determine which will work best for your business. The former is less risky compared to the latter, but the latter option will give you the chance to own the equipment once it is fully paid. Whatever option you choose, Quikfund will be ready to help you out.
There are financing companies like Quick Fund that will provide you with the equipment for your business’ use, and all that you would have to do is to pay monthly rentals. Both equipment leasing and equipment financing can be provided to you by lending companies like Quikfund.