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The question which is doing rounds in the prudent brain of the business organization these days is whether to acquire the equipments through direct purchases or make use of the equipment lease finance. The concept of leasing the equipment is not a new one and is present in the business arena since a long time. Because of the momentum gained by the process of equipment leasing the business market is flooded with equipment leasing company. The equipment lease finance has particularly become a sword for the small scale businesses that always face a dearth of finance. Here, in this article let's discuss the various aspects of equipment leasing. What is equipment lease finance? This is a sort of rescue option for the businesses to face the challenge of acquiring equipments. According to the statistics revealed by the Equipment Leasing and Financing Association (ELFA), eight out of ten companies in the USA are leasing few or all equipments. The business organizations seem to be quite happy with the concept of lease finance and desire to make use of the services of an equipment leasing company again. The business equipment leasing companies are adept in providing any sort of equipment depending upon the need of the business organization. The equipments usually leased are fax machine, printing press, bulldozers and trucks. What are the advantages associated with business equipment leasing instead of making a direct purchase? With the services provided by business equipment leasing companies, the business organizations are in a position to free up their working capital which can be used for other business purposes instead of buying the costly equipment. The equipment lease finance is considered as an expense and not a debt, therefore it also acts as a booster for the net worth of the business. The lease expenses are deducted from the current year's pocket books, thus result in tax savings. The attribute of maintenance of the bank credit line is the underlying advantage associated with business equipment leasing. The equipment leasing company does not even require any sort of business plan to provide the much needed lease to a business. All what is required is a six month credit history to avail an assurance of the ability of the business firm to pay the lease amount. What are the considerations to be kept in mind when selecting an equipment leasing company? The right lease company varies according to the size, geographical location and the need of the equipment of the business concern. Make sure that the leasing company has a stake in the equipment leased by the business organization. The services of the equipment leasing company must be taken into consideration. For instance the lease representative should tell about the different available equipments instead of just taking the order and providing the lease. The payment of the equipment lease finance is available as skip lease and step-up lease; make sure that the lease company provides such facilities.
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