Which is Better: Equipment Leasing or Equipment Financing Townsville?
There will be times when your business is in need of equipment, but your company doesn’t have enough financial source to buy it. Then there are always two options regarding your problem: Equipment Leasing and Equipment Financing Townsville. Both of the two options can solve your equipment finance issues, but it depends on what fits your business and financial needs.
What is Equipment Leasing?
It’s a method of renting an equipment for a business to use it. It’s more likely renting a car for a span of time. This process doesn’t require any collateral or down payments for the leasing of any types of equipment from any leasing company. You’ll be only held responsible for the monthly payments for the term of your lease agreement. And once the term of your agreement comes to an end, you can renew or terminate the lease or else, you can purchase the leased equipment with a fair market value.
Equipment Leasing can be a big disadvantage for any business. Leasing an equipment can be costly than purchasing the equipment. But for a rapidly growing business and does have a high turnover of equipment, it can be a great solution since leasing an equipment is very effective for this kind of business.
What is Equipment Financing?
A method of extending capital of any businesses for the main purpose of acquiring equipment. Equipment loans are one of the different types of equipment financing. Their basis on how much money they will borrow you depends on what equipment you will buy, whether it’s used or brand new.
There is also no collateral needed because the equipment you are going to purchase can help to secure the loan agreement. With this loan, they usually have fixed interest rates that range 8% to 30%.
The two options can benefit any business but it will depend on what fits the most. But when choosing between the two, you need to consider what particular equipment you really need. You can choose equipment finance Townsville when you need the equipment for a long period of time, and when you need it for just a short time, consider choosing equipment leasing. But with NQ Finance, we can help you choose what is the best for you. We can give you a hand.