Leasing equipment is a great strategy many business owners use to increase productivity and maintain their competitive advantage.
In the past, upgrading equipment or technology was prohibitively expensive and beyond the reach of many businesses.
However, this is no longer the case. Small and medium businesses can now access equipment and technology, that previously was only available to much larger businesses.
Leasing Equipment to Improve Productivity
One of the most significant advantages of leasing equipment is the increased productivity it can deliver.
Being able to produce more, faster and with less hassle!
However, the benefits go well beyond doing more in less time. The latest equipment allows businesses to:
- Be more responsive to customer requests
- Improve turnaround times
- Eliminate or reduce, low value mundane tasks
- Free up time to focus on higher value work
- Enjoy efficiency gains through better integration of systems and processes
- Reduce costs
- Preserve cash flow
Improved Responsiveness by Leasing Equipment
Customer expectations are continually increasing – in fact, today, good service and quality products are the customers minimum expectation!
To prosper, businesses need to exceed customer expectations!
Customers want higher quality and faster turnarounds. They also expect solutions tailored specifically to their individual requirements.
Short runs and faster turnaround times are now the norm. If you can’t keep pace, customers will quickly find an alternative!
Process Focused to Customer Focused!
Another significant benefit of Leasing Equipment is that it can allow team members to focus on high value, rather than low value, work.
With more time, they can explore ways to improve processes that will enhance the customer experience!
In this context, new equipment can be viewed as an opportunity for the team, rather than a threat!
Integration and Efficiency Gains!
Integrating equipment with your other systems and processes is critical!
Nothing can hamper efficiency more than standalone systems that don’t communicate with one another!
Double handling and lost productivity are invariably the results.
Even basic equipment now has embedded software, that can be integrated with other business processes and tools.
While integration may require the assistance of a tech specialist, it is worth the cost given the productivity gains it can unleash!
In our own business, we have seen how using up to date, integrated technology, can save both time and costs!
Preserve Cashflow and Fix Costs!
Leasing equipment, rather than purchasing it outright, allows business owners to preserve cash flow and fix costs.
Because the interest rate is fixed, the repayments and cost are known, which also makes budgeting a whole lot easier.
While funding equipment purchases from cashflow may save some interest, it can absorb cash that could be better used to:
- Fund day to day operations & business growth
- Capitalise on opportunities as they arise
- Provide greater purchasing power – take advantage of discounts
- Provide a buffer if cashflow or market disruptions arise
(Leasing Equipment at the outset MAY ALSO BE CHEAPER than trying to refinance it at some future point if you need to re-inject the funds back into the business. The cost of the finance will be substantially higher, and a valuation of the equipment will also likely be required)
Summary
We are not suggesting leasing equipment is the answer to the many challenges faced by businesses daily.
However, when prudently used, and correctly structured, it has tangible advantages compared to purchasing outright.
As many clients have discovered, finance used the right way, can be a powerful tool to help them grow and compete in an intensely competitive marketplace.
If you would like to learn more about Leasing Equipment, don’t hesitate to get in touch.
