Own Your Equipment for the Long Haul
Thinking about financing your next equipment, but aren’t sure which payment plan is best for you and your business needs? If you want to own your equipment for the long haul, a Lease-to-Own Program works best for businesses that want to own their equipment at the end of their lease. Keep reading to understand the ins and outs of how Lease-To-Own works.
What is Lease-To-Own?
The best way to explain lease-to-own payment plans is to compare them to a traditional lease. As you may know, with a typical lease, you’re essentially making a monthly payment to use the equipment with the intent of returning it after a set period.
Lease-to-own payment plans have a monthly payment, similar to a traditional lease, but allow you to work toward ownership. Rather than returning the equipment when the agreement ends, you keep it, and ownership is transferred to you from the lender. How this happens can vary depending on the terms of the agreement, but the endgame is ownership.
How does Lease-To-Own work?
At the conclusion of your lease, the ownership is transferred to you, and you can do what you please with your equipment. You make your monthly payments and once you reach the end of the lease, you pay the final balance (it varies based on the plan) and receive ownership. The equipment is yours and you no longer make payments—no more paying to use the equipment or worrying about extending your lease contract. You are also entitled to write off 100% of the lease payment when you buy it.
Benefits of Lease-To-Own
- Budget friendly. With a lease-to-own program, you can acquire equipment you wouldn’t be able to afford otherwise. Dividing out the cost into manageable monthly payments makes it easy to fit into even the tightest of budgets.
- Long-term profitability. By leasing the equipment, you should notice an increase in your profits. Even with paying each month, you’ll soon find that your incoming cash is greater than the outgoing. This increase becomes even more pronounced when the lease is over and you own the equipment. Since most equipment’s lifespan surpasses the length of a lease, a lease-to-own payment program almost ensures you continually profit.
- Flexibility. Utilizing a lease-to-own payment program comes with several levels of flexibility. From term, to monthly payment, to buyout options, you’ll be able to choose the perfect plan that allows for maximum growth and profitability. With the right plan and a great lending partner, you won’t be stuck in a program that doesn’t work for your budget or business.
Take the First Step
Now that you know how easy and beneficial it can be to get the equipment your business needs through lease-to-own, you’re probably wondering how to get started. The first step is to apply for a lease-to-own payment plan! You can do this even before you find the exact piece of equipment you want to help you understand what can fit in your budget.
Download our Lease-To-Own White Paper to have all of the information you need in one place.