Lease purchase agreement financing has a variety of benefits to your business. When you go this route your business gets to use the equipment to generate revenue even though your company doesn’t completely own it. Your business also gets a major tax benefit from leasing of up to 100% of the monthly payment if it is setup as a true lease transaction.
With a lease purchase agreement your business would agree to lease some equipment from a company for set monthly fee with the intention of purchasing that equipment after a set time period. Often times businesses cannot get approved for the funding they need to go out and purchase equipment so a lease purchase agreement gives them the flexibility to lease the item with the intention to purchase it at a later date when they can have more capital to obtain the financing.
Businesses with no major collateral can still get the equipment necessary for full productivity. The lease would allow the business to make money without having to buy it outright. When a company leases their credit lines also are not tied up which means they can easily get approved for other financing needs.
Other benefits of a lease purchase agreement include less paperwork, and faster approval time. This enables you to focus on other important areas of your business. If you are wondering about high monthly payments, you won’t have to worry because leases can have flexible terms of 36 month, 48 months, or 60 months.
Search our free business capital search engine to find a company that will lease your business the equipment it needs to be successful.