As COVID-19 has disrupted many business operations, they had to learn to adapt to the unfavourable situation. It is no surprise that the demand for vehicles has weakened due to the economic disruption. This lower demand leads to lower revenue which will continue for a period of time, before the economy fully recovers.
The leasing market, on the other hand, has always been expanding in the markets through all stages of an economic cycle. It has been proven in the past to be a strong financing alternative even at times of an economic depression crisis. During the great depression back in the 1930s, companies that utilised alternative solutions of leasing out equipment have consistently performed well. Why is this so? Potential customers and clients who are badly affected by the financial crisis will seek to look for cheaper and efficient alternatives with equivalent needs to be satisfied. In this article, you will understand the good uses of equipment leasing, especially in times of an economic crisis.
Equipment leasing saves your working capital that would otherwise be used if you were to make cash payment for your desired equipment. By using an equipment leasing system, you can still receive your specific equipment needs and spend at a budgeted amount. This allows you to save costs and make affordable payments over a period of time. It is an efficient system that allows you to save your money for business expenses and execute operational expansions in times of post COVID-19 situations.
Equipment leasing gives you a competitive advantage which could help you to stay on top of the latest advances in equipment and technology. Leasing equipment also allows you to adjust as the industry progresses and increases flexibility as you can make upgrades to newer equipment. This advantage that you receive will not be possible if you choose to buy equipment, as you are stuck with it till you sell it. Thus, equipment leasing is most suitable if you have to use equipment that needs to be constantly updated with better technology and capabilities.
Repair and Maintenance
Repair and maintenance is a major factor when you purchase any piece of equipment. However, equipment leasing agreement will help businesses to avoid any incremental costs for repair and maintenance. In most circumstances, the leasing company will cover the cost of repair and maintenance equipment in the event that it breaks down or spoils. They will provide the benefit of repairing and maintaining the equipment as necessary.
What to expect in Equipment Leasing Process
When applying for an equipment lease, you can expect the process to include the following steps.
First of all, you need to complete an equipment lease application. Repair and maintenance is a major concern for any piece of equipment, especially when you buy it. A leasing agreement will help businesses to avoid any costs for repair and maintenance. The leasing company, in most cases, will cover the equipment cost in the event that it breaks down, and the company will repair and maintain the equipment accordingly.
Upon submitting the lease application, the company will contact you within 24 to 48 hours.
Once you receive approval, you must review and finalize the lease package, including monthly payments offered by the company. You will be required to sign the documents and resubmit them to the company, along with the payment.
When the company receives and accepts your documents and payments, the lease will now take effect and you are free to accept leasing delivery of the equipment and commence any upgrades necessary.
Where to Lease Equipment
When it comes to leasing equipment, it will be wise if you choose a professional company with remarkable years of experiences. The ETHOZ Group provides equipment leasing in Singapore, where you can enjoy all the profit-generating benefits and convenience of having your own equipment without the headaches of asset depreciation. This is an ideal financing option for companies looking to increase liquidity and better manage cash flow.
Equipment leasing allows you to bring in the equipment and technology your business requires without expending your working capital or business credit line. Here at ETHOZ, we understand how equipping your business with the right equipment can help increase productivity, improve efficiency and make a dramatic improvement to your bottom line. Apart from that, equipment and technology are extensions of your company’s brand that plays an important role in how your company is perceived by your customers and prospects.
If you ever need any equipment leasing solutions in Singapore, you can simply reach out to a member of our team at firstname.lastname@example.org to explore the options available to you. If you like reading more of such content, head over to our blog to learn useful tips and case study!