Leasing for Business
Virtually every company relies on technology, business equipment and other types of materials. You may need machines for your manufacturing plant, furniture and computers for your office, industrial-strength kitchen equipment for your restaurant or other materials for your specific organization. Many businesses choose to lease rather than own when it comes to these types of needs.
Leasing office equipment and business infrastructure services allows your business to stay competitive without impeding cash flow.
To understand how leasing can fit your financial goals, contact our commercial leasing specialist Don Bonafede, SVP Commercial Lending, at 717.909.8363, visit your nearest Financial Center, or connect with a banker online.
Why Leasing for Business Makes Sense
Whether you need computers for your design business or shelving for a retail space, you have the option of buying new or used equipment — or leasing. Buying allows you to have an asset you can liquidate at a later point. Leasing, however, comes with its own benefits, such as:
- It can help you fund necessary equipment. In many cases, purchasing all the equipment and supplies you need to start a business or to expand your company can be overwhelming. Even if you purchase off-lease or used products, your budget simply may not allow for the purchases. Leasing spreads out the cost and monthly payments, making it easier to afford what you need.
- Leasing helps you avoid obsolescence with trade-ins. When you are buying your used equipment and eventually have to trade it in to purchase new items, your trade-ins will likely be worth a fraction of what you originally paid. In addition to deprecation, you may have trouble trading at all if the technology has become obsolete. With leasing, the company leasing the product has to worry about it — you don't.
- It lets you keep technology up to date. In most industries, companies need the latest equipment to stay competitive. Healthcare practitioners, for example, need the newest medical and diagnostic equipment to offer quality care to their patients. Design companies need the latest software and hardware to design the images their clients want. When you purchase equipment or supplies, you are making a significant investment, and it may be more difficult to keep your technology up-to-date. With leasing, you can enjoy flexible terms so you can update as often as you need to help your business stay on the cutting-edge of your industry.
- It helps you manage cash flow. With leasing, you don't have to invest a significant amount of money into equipment or technology up front. With monthly costs instead, it's easier to manage cash flow.
- Leasing works to preserve working capital and credit lines. With leasing, you don't need a larger amount of financing upfront, since your costs are monthly. This leaves credit lines and working capital available for other overhead costs. In some cases, this can make your business less vulnerable, since it prevents you from over extending your credit.
When you need to decide between buying and leasing, carefully consider your business needs and costs. Leasing can be more flexible and can help free up cash flow. Purchasing may offer you an asset (albeit a depreciating asset), but it requires a larger upfront investment.
How Centric Bank Offers Flexible Financing for Business
Centric Bank offers business banking, lease products and other financial products. No matter what industry you are in, there are many benefits to leasing with Centric Bank, including:
- Up to 100% financing of equipment
- Fast, local credit decisions
- Flexible financing with a fixed rate on terms up to 60 months
- Sales and use tax paid monthly
- Customized payment schedules, longer terms, and additional financing purposes (i.e., installation, training, shipping, etc.) for medical and dental practices
Centric Bank works with businesses regularly, so we understand the needs of the business community. That’s why our leasing products give you fast answers and the flexibility you demand — so you can reap the benefits of leasing. Contact us today to find out more.