Computer Equipment Financing

Computer Equipment LoansIn today’s day and age, computer equipment is essential to the success of millions of businesses. No matter if you have a small business or a Fortune 500 company, one thing will never change: computers make your business run much more efficiently. You may be wondering which is better, Computer Financing or Computer Leasing. Luckily, we have the answers for you.

Computer Financing vs Computer Leasing

Along with computers, there are other types of related equipment that companies in a variety of industries commonly use.

Although the cost of computers is decreasing, this does not mean that you will have enough cash to purchase everything you need. Additionally, you never know when the time will come to purchase/lease new equipment during an expansion phase.

When you compare leasing computer equipment to financing, you will realize that there are advantages and disadvantages of both.

Benefits of Computer Leasing

  • Lower upfront cost
  • New equipment more often
  • Your equipment will always be up to date
  • A predetermined monthly expense that never changes
  • Keep up with your competition

Downside of Leasing

  • You may end up paying more in the long run
  • You are required to keep paying for the equipment, even if you stop using it

Benefits of Financing

  • Easier than leasing – less paperwork required
  • You make all the decisions in terms of maintenance
  • All of your equipment is tax deductible

Downside of Financing

  • The initial cost of buying new computer equipment may be too much at the present time
  • You will eventually be stuck with outdated equipment

As you can see, there are pros and cons to both options. The only way to make an informed decision is to carefully compare the many details of leasing and financing. At some point, you may realize that one strategy better fits your company from a financial standpoint.

Questions to ask before Leasing Computers for your Business

Most people are aware of what goes into buying new computer equipment. However, leasing is a bit more complicated. Here are several questions to ask:

  • Is there a buyout option at the end of the lease?
  • What type of lease are you signing – an operating lease or a capital lease?
  • How long does the lease last?
  • Can I terminate the lease early? What happens if I do?
  • Can I add new equipment to an existing lease in the future?

When you ask these questions while also considering the pros and cons detailed above, you will be armed with the information necessary to decide between purchasing or leasing computer equipment.

Kayleen M
Kayleen M
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American Business Credit exceeded my expectations! They were so helpful from the very beginning of the process to the end. Everyone I came into contact with were very professional and had valuable incite to help me with any hesitations and questions that I had. I am very impressed with the service they provided. Craig Johnson was my main advisor through this process and I would high recommend him based on his expertise, guidance, and service he provided to me as a client. Any financial needs I have in the future I will be a returning customer of American Business Credit. Thank you Craig for all your hard work.
Derek J
Derek J
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American Business Credit was extremely knowledgeable, professional, and helpful from start to finish. My loan processor Craig was extremely helpful, answering all of my questions as they arose. They delivered the exact results promised during our first call in a timely manner. Highly recommend.
Eduard A
Eduard A
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I am so glad I found ABC, every company or lender I talked to told me we needed to have revenue on our business to get a loan, well we are a start up, and need the loan to get started generating revenue. ABC was able to get us funded at great rates in a short amount of time. I definitely plan on using them again as our business grows!
Erik R
Erik R
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Amazing! Kina Jackson was sooooo helpful and made the process a breeze! We weren't sure what we could get as a start-up and needed a ton of equipment to get our business going. Kina dug deep and found us what we needed to fund our equipment needs and we can't thank her enough! Thanks again Kina and American Business Credit! Stop by the store next time you're in Vegas! - Erik Rogers, Veg-In-Out Market
Cassandra M
Cassandra M
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Kina was amazing to work with. As a new business owner and limited credit history, she really went to bat to ensure my business plan was heard by the lenders, so they felt confident in investing with me. Highly recommend!!

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