A lot of small businesses and start-up businesses find that they require dump truck financing and leasing, as they are unable to raise the funds necessary to purchase the equipment outright. Banks have recognised this need, and they are trying to respond by coming up with their own lease programs. However, leasing is still generally offered by outside organisation, helping small businesses to thrive and survive. Leasing has a number of key benefits to be aware of.
The Benefits of Dump Truck Financing and Leasing
The first main benefit is that the equipment will be in the possession of the business without having to pay a great deal with money up front. Having to spend a large amount of money significantly reduces cash flow, also making it more difficult to pay for maintenance and repairs. Leasing, in essence, greatly improved cash flow therefore. Often, leasing contracts even include service, maintenance, and repair.
Essentially, leasing helps companies overcome the limitations of their budgets. Most small businesses simply do not have the available funds to purchase equipment as big and expensive as a dump truck. Leasing provides them with a far more flexible solution, for which budgeting is also a lot easier. Not just that, leasing terms are legally required to be reasonably flexible and to be negotiable depending on the needs of the business. The terms are generally better than those offered by bank loans.
Another great benefit is that it helps to avoid obsolescence. This is one of the biggest problems that businesses face, as technology changes at a pace too quick to really keep up with. If you do decide to purchase a piece of equipment as large as a dump truck, the depreciation could be so rough just because somebody comes up with a new piece of technology, that the business will never be able to recoup those costs. With leasing, this is of no concern.
Furthermore, leasing is much quicker than any other form of purchasing. Buying equipment often requires a lot of documentation, particularly if it needs to be finance. With leasing, very little documentation is required. In fact, a professional leasing company quote agree to the application within a matter of hours. Compare this to a bank that may take several weeks just to decide to not provide financing, and it becomes even clearer why so many businesses up to lease.
Last but not least, leasing is incredibly flexible and it offers great tax benefits. What this means is that you can use the equipment for as long as you need and then decide to buy it, return it, or upgrade it. And since the equipment is not technically yours until the end of the lease term, it is seen as an asset for tax purposes and the interest and most of the payments can usually be deducted. This means that, overall, it costs a great deal less to lease than it does to finance and certainly to own.