You’ve heard of the term “cash is king”? Cash is required in businesses to pay payroll, rent, inventory and other business expenses. Businesses are cash flow dependant to survive, maintain or expand.
When it comes to the purchase of new equipment consider a financial alternative by leasing the equipment.
Why Consider leasing as a financial solution?
Leasing your equipment will prevent you from having to use your line of credit to acquire the equipment. It will also prevent you from going through the hassle with your bank to seek a loan, preventing you from maximizing your financing exposure with the bank.
Leasing is a better alternative than using your surplus cash to purchase the equipment as you can use your cash for better options to grow your business e.g. more inventory resulting in higher sales.
Your “New Found Money” has expanded your company’s cash reserves as you were not aware that it was available.
Obtaining lease finance is a simple application with approvals within 48 hours for established companies with credit bureau reports for amounts less than $20,000. For larger amounts, financial statements will be required but the timeline will be quite similar. Will your bank be able to turn this around that quickly?
Don’t wait for tomorrow…Grow your business today
So why not lease your next equipment purchase instead of financing or paying cash? Your company needs more cash reserves to drive your business and improve profitability.
Companies require cash flow to drive their business no matter what stage they are in. At early stages, most companies start out under-capitalized resulting in trying to conserve cash for capital expenditure and even basic operational expenses. Scrimping on capital expenditure such as acquisition of machinery can affect productivity and the competitive edge.
Leasing enables companies to acquire equipment with monthly payments, that can be paid off over time, rather than making a huge financial investment just to buy the equipment outright. Companies may not have been able to acquire the equipment through their operational cash flow or may have difficulties to obtain a loan from their bankers as they have maximum exposure with their bankers. Leasing companies have simplified the credit processing procedures and the turnaround for a reply is much faster than the traditional bank.
The bottom line is: leasing is an alternative financial solution to acquire good quality equipment now which will help you grow your business for the future today!
Posted in Leasing
Hi my name is Ivan. I’m the head of the IG Financial Group and I’d like to welcome you to my blog. Here’s a little bit about myself:
My background has been in merchant banking, finance and as CFO for companies in various industries in Asia, USA and Canada. For the last 15 years, I have been involved in arranging lease finance through equipment leasing and factoring finance (accounts receivable financing) in Canada. Equipment leasing has been advantageous for companies at many different stages, and I have provided lease finance for acquisition of equipment for start ups, development stage, growth stage and even matured companies.
Lease finance and factoring finance are alternative financing solutions available but often not known as advantageous options to companies. They are often perceived to be too expensive versus traditional bank financing. With this blog, I hope to shed more light into how to use these alternative financing solutions and achieve your business goals.