|
||
Equipment acquisition options for small businesses
Acquiring all of this equipment at once to start a business is pricey. That's why most small businesses don't purchase equipment; rather, they finance it. There are many different equipment acquisition options for small businesses. Leases There are two main types of teases for small businesses: capital leases and operating leases. Capital leases Once the lease term is over, the small business has the option of purchasing the equipment for a fixed price. Typically, this is no more than fair market value of the equipment. The lease payments are applied towards the final price, so at the end of the capital lease, the payments that have already been made will be deducted from the overall price. When combined with fair market value price, at the end of the lease, oftentimes a small business will end up paying a relatively small amount to own their equipment outright. Operating leases If you use an operating lease to obtain your equipment, you can't list it as an asset, nor are you liable for anyone other than the lease payments. Another plus of this type of equipment acquisition is that the maintenance of the equipment is the responsibility of the person or company leasing it. This type of lease is typically short term. Loans Loans are a good option if you need equipment that is not going to be obsolete any time soon. If your small business requires equipment, like many small businesses you will not have the cash flow to purchase your equipment outright. And even if you do, it may not be fiscally smart. These are a few equipment acquisition options for small businesses.
,
|
||
Copyright 2003-2020 by BusinessKnowledgeSource.com - All Rights Reserved
Privacy Policy, Terms of Use |