Every business needs the tools to operate. They need the ability to get things done without having to compromise on quality and the speed of production. Because of this, we use the most applicable machines we can find.
More tech and research goes into the making of a product than anything else. For example, one may marvel at the battery-powered juggernaut: Tesla. But the real innovation is in the Gigafactory. That’s where the bulk of time and planning goes, and for good reason.
It’s the engine that keeps the industry going. Not all of us are Elon Musk. Most of us in business are either starting or are in a state of flux and expansion. Because of this, leasing business equipment is becoming a more solid and viable option. But what is it that one needs? How does one lease business equipment? What do the numbers look like? Here we will take a good look at the options businesses both big and small have when it comes to leasing equipment. We’ll also look at industry-specific examples and try to get a feel for how to maximize its use.
So why would you want to lease business equipment? There are tons of reasons, but one of the biggest ones is efficiency. If you buy the equipment, like most machines, the value depreciates. You have to calculate the cost and add it into your pricing and further project your return on investment.
When you lease equipment, you can put it under operating cost and make better, more immediately sound decisions on your business based on the most recent numbers.
You’re not having to play catchup on equipment that may or may not be obsolete in the next year. So if you have different options lined up, you don’t have to stick to a single one for an indefinite amount of time. You can work things into your contract with the supplier and negotiate the use of bigger or more efficient machines down the line. You’re not married to the single use of the business equipment.
Finding your maintenance is a pain. It’s one of those things that businesses tend to overlook in the grand scheme of things. Of course, production will be ongoing. Things will not stop. If a significant amount is riding on the trust of business machines, of course, they will perform on the dot. But, like all things that move, sometimes it needs maintenance. Not just the daily maintenance that should be on every business’s quality assurance protocol, but monthly, yearly, and emergency maintenance.
Things go wrong all the time. If you don’t secure an on-call or on-site team, you’re looking at a lost day and compromised productivity. If you lease business equipment, more often than not, they have service options. Buy in. They’re a bit pricey, yes. But you are buying the service contract of someone who knows exactly what they’re doing.
They service these machines all day. They have access to patented materials and guides. Why would you trust anyone else but the supplier’s offer for maintenance?
The Ins and Outs
So down to brass tax. Leasing business equipment is like leasing anything. You need a down payment, a contract, a monthly, and possibly a premium if it’s brand new. As a business, you need to be able to negotiate what you need and secure what you can get. That’s expected of anyone. Not to say you have to be a hard-head about getting everything you want. But you need to know the ins and outs of your business and apply it to the acquisition of a leased machine. Usually, a contract is between 5 to 10 years depending on what exactly it is.
For instance, medical laboratory equipment tends to be in use for about a decade. This is because the efficiency and predictability of a medical analyzer (especially in clinical chemistry or hematology) are favored over the new bells and whistles. In turn, the TAT of results can be reliably related to the doctors. One can conclude what “STAT” can mean. This is the same in most business contexts. You don’t want to keep changing up the flow of work every year. What you want is to be able to expand and add to what you already have. That is, until the tech or the stakes change.
Leasing business equipment is easier than you think. Like anything, you need the cash and the wherewithal to get it done. But aside from that, business equipment is just part of the necessary cost of staying operational. In the end, you can try to buy the equipment. But then again, why would you do that? If leasing works, why change it?