Leasing and financing can ease budget concerns

What we have experienced these past several months reinforces the fact that keeping much-needed cash is simply critical to sustain business operations. However, businesses still need to acquire and maintain equipment, technology and software to run and grow.

Leasing and financing can ease budget concerns by providing flexible payment solutions. First, leasing and financing can help a business keep its cash, protect its lines of credit, and spread out the costs of assets over time through flexible payments. In recent weeks, many companies have applied for and received payment relief from lenders – such as 90-day deferrals or restructuring – to ease capital concerns. If the equipment or assets are owned outright, flexible financing options to accommodate shifting budgets are not possible. In fact, if that equipment were owned, a business would be paying for 100% of the cost and not generating income if it were shut down due to Covid-19.

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Financing and leasing also allows a business to use 100% of the equipment but only pay for a fraction of it each month.

Matching equipment use with revenue and creating optionality throughout the term are always beneficial but are extreme advantages during a slowdown. In this period of a new normal and uncertainty, this has never been truer.

In addition, flexible financing options allow for rapid deployment of critical assets. As business priorities are rapidly changing, so are asset needs. For example, as organisations moved to remote working almost overnight, financing has supported quick deployment of devices and software to support remote working capabilities without businesses needing to spend the upfront cash.

For more information, visit www.dllgroup.com