Why Buy When You Can Lease: Using Equipment Financing to Free Up Cash Flows

In order to operate effectively, every business requires equipment. Equipment is a broad term referring to machinery, programming, or furniture that is essential for the operations of your business and service. We here at Ascent Business Capital understand the necessity of equipment financing, especially for young startups without a track record of at least two years, and are pleased to offer several programs, including equipment leasing, to help you build and expand on your brand.

Leasing Advantages

While ownership is often the desire with every major purchase, it is not advisable in every situation. Buying expensive equipment outright can limit certain advantages when it comes to accounting and tax time. An owned piece of equipment is an asset, but it is a depreciating asset which can limit accounting benefits. Additionally, leasing has several other benefits worth considering:

  • Elimination of obsolescence
  • Preservation of cash flows and credit lines
  • Fixed monthly payments
  • Low interest

Available Programs

Here at Ascent, we offer four types of programs for leasing equipment: startup programs, sale and lease back programs, government/municipal leasing, and B, C and D credit programs. Each program offers advantages, but they all differ slightly in structure and availability.

  • Startup Programs: Designed for companies that are less than 2 years old, these programs are aimed at helping businesses realize their potential through the purchase of essential equipment.
  • Sale and Lease Back Programs: Using the equity in your current equipment, Ascent will purchase new equipment, leasing it back to your company. Once the agreement is satisfied, and all payments have been made, ownership is transferred to your business.
  • Government/Municipal Programs: These programs are designed for government and municipal businesses with guaranteed approval and financing.
  • B, C and D Credit Programs: Simply put, these programs are designed to provide financing for struggling businesses with less than perfect credit.

Equipment leasing can make all the difference for you and your business. No matter your financial situation, Ascent Business Capital has a program for you. If you’re interested in equipment financing, then find out how we can help you by calling.