Not certain if equipment leasing is better than purchasing business equipment outright? It all depends on your company business structure, if you own a small or medium-sized business and want to acquire new equipment, it’s important to know some of the key advantages of equipment leasing to guide you in making the best decision for your business’ needs.

Company A is an architecture company that deals with design development. Their existing PC and laptops specification can no longer meet most of the latest software requirement and struggle to handle heavy-duty graphic rendering – basically reaching the end of their useful life. They are looking at acquiring 50 brand new laptops for its employees in bid to improve their productivity as well as gaining the additional competitive edge.

The owners of Company A approached ETHOZ Capital for financing solution as they are reluctant to pay $100,000 upfront to upgrade all the laptops. ETHOZ recommended Company A to consider Equipment Lease programme to fund these laptop upgrades.

Upon agreement, ETHOZ quickly process their application. The whole process is quick and hassle-free. Thus, Company A is able to proceed with their laptop upgrade almost immediately – increasing their employees’ productivity.

ETHOZ has provided Company A the following terms:

Interest Rate                  :           0% for 2 years
Monthly Repayment :           $4,166.67 x 24 months

In this example, Company A does not have to fork out $100,000 upfront to buy the 50 laptops. Instead, Company A only pays $4,166.67 per month through the Equipment Lease programme and frees up its cash for other uses.

* Disclaimer: Example above is merely shown for illustration purpose to better allow readers to understand the uses of each financing solution. Figures and interest rates listed above are not representative; it may differ based on each company’s requirements and management’s approval. Additional terms and conditions may also apply based on the credit assessment and evaluation conducted during application. ETHOZ Capital Ltd and its employees make no representation or warranty, whether expressed or implied, and accept no responsibility for the completeness or accuracy of the computation.