Cash Flow Considerations on an Equipment Lease

You have to consider cash flow when you are considering a copier lease. A lease is often the best way to mitigate a tight cash flow in the startup phase of your business. There might just be even more leeway than you think in a lease.

Standard Lease

A standard lease typically requires the first and last payment up front, and then equal payments for the term of the lease. The lease term is likely anywhere from 2 to 5 years.

Step Up Lease

A step up lease is sometimes structured around higher priced equipment, such as digital copiers or printers. Payments begin at a very low level and then step up over the course of the lease to a higher, regular payment. The step up lease is designed to help startups receive the latest equipment without adversely impacting cash flow.

Deferred Payment Lease

A deferred payment lease usually offers the lessee a period of time, typically 90 days, before the second payment is due. Therefore, a copier lease might featured a deferred payment to allow a startup business to generate revenue.

There are a variety of options at the end of each of these leases. If you're considering an equipment lease, consider JJ Bender.

Leasing a Copier as a Seasonal Business

The goal of every seasonal business owner is to ensure that as many variables as possible are eliminated. One of the best places to begin with is your funding source.

We know one jeweler, who only has two profitable months a year. But you should see those two months. The challenges faced by business owners with seasonal demand are unique. How do you keep track of costs relative to revenue, when one is consistent and the other is erratic? The answer may be in how you structure your next lease.

Many companies are eligible for flexible payment schedules, that are arranged in accordance with product demand. Now most companies will not have a fiscal year (hopefully) like our friend the jeweler; however, corporations will have stronger sales periods based on holidays or the corporate calendar. Leasing equipment can help your business manage cash flow, regardless of the season. Leasing or renting a copier in the short-term could provide more stability in the long-term. If you're considering leasing a copier, please consider JJ Bender.