Starting or expanding a small business is challenging and one of your most important decisions is whether to lease or purchase. When making that decision, there are many things to take into consideration such as available cash flow, monthly expenses vs. fixed capital outlay, budget considerations, and when things become out of date. Getting a small business loan is a great way to finance your business needs. You can ease the process by first making sure you know as much as possible about all the options available to you, and how to successfully apply for your small business loans or financing. When applying for your small business loan, remember to check the fine print to ensure that you meet the qualifications for the loan type you apply for. Remember that when taking out a loan to check interest rates and by when the loan needs to be repaid.
Another great way to fund your business is through leasing. Leasing helps minimize costs for supplies giving more money for other aspects of the new business. A benefit for leasing over business loans is, leasing conserves credit lines. Because money is not borrowed when you lease, your existing credit lines are not affected and are still available for your company’s growth. Because lease payments are made from before tax earnings rather than with after-tax earnings, depending on the structure of the lease, 100 percent of your lease payments may be fully deductible. Through leasing you get both quality and quantity – leasing allows you to get what you really want, instead of accepting a lesser piece of equipment that just meets requirements, but doesn’t leave much room for growth. For small business owners on a budget, leasing seems like the correct choice. If you are opening a new business and are not yet sure which method to use, local lenders and financing resources often provide extra opportunities not afforded by larger, national suppliers, and you can check with them first.