business equipment lease, 7 Benefits

business equipment lease, 7 Benefits

7 Benefits of Business Equipment Lease for Export Management

If you are an export manager, you know how important it is to have the right equipment for your business. Whether you need machinery, vehicles, computers, or other tools, you want to make sure they are reliable, efficient, and up-to-date. But buying new equipment can be expensive and risky, especially if you are not sure about the demand or the return on investment. That’s why many export managers choose to lease their equipment instead of buying it. Leasing is a flexible and cost-effective way to get the equipment you need without breaking the bank or compromising your cash flow. Here are some of the benefits of leasing your business equipment:

You can access the latest technology and equipment

Leasing allows you to upgrade your equipment whenever you need to, without having to sell or dispose of your old equipment. You can always have the most advanced and suitable equipment for your export operations, which can give you a competitive edge and improve your productivity and quality.


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You can save money and preserve your capital

Leasing does not require a large upfront payment or a down payment, unlike buying. You only pay for the use of the equipment, not its ownership. This means you can save money and use your capital for other purposes, such as marketing, research, or expansion. Leasing also helps you avoid depreciation costs and maintenance expenses, as these are usually covered by the leasing company.

You can enjoy tax benefits and deductibility

Depending on the type of lease you choose, you may be able to deduct your lease payments as a business expense, which can lower your taxable income and reduce your tax liability. Leasing can also help you avoid paying sales tax on the equipment, as it is considered a service rather than a purchase.

You can improve your cash flow and budgeting

Leasing gives you predictable and fixed monthly payments that are easier to manage and plan for than variable or lump-sum payments. You can also adjust your lease terms and payments according to your cash flow situation and business needs. Leasing can help you avoid cash flow problems and improve your liquidity and working capital.

You can reduce your risk and liability

Leasing transfers some of the risks and responsibilities of owning equipment to the leasing company. You don’t have to worry about obsolescence, depreciation, or disposal of the equipment at the end of its useful life. You also don’t have to deal with insurance, repairs, or maintenance issues, as these are usually handled by the leasing company. Leasing can protect you from unexpected costs and losses associated with equipment ownership.

You can increase your flexibility and options

Leasing gives you more choices and freedom than buying. You can choose from a wide range of equipment models, brands, and features that suit your business needs and preferences. You can also customize your lease terms and conditions, such as the duration, frequency, amount, and type of payments. You can also opt for different end-of-lease options, such as renewing, returning, or buying the equipment at a fair market value or a predetermined price.

You can enhance your credit rating and borrowing power

Leasing does not affect your credit score or debt-to-equity ratio as much as buying does. Leasing is considered an operating expense rather than a debt obligation, which means it does not show up on your balance sheet or reduce your borrowing capacity. Leasing can help you maintain a good credit rating and improve your access to financing from banks and other lenders.

As you can see, leasing your business equipment can offer many advantages for your export management business. Leasing can help you save money, improve your cash flow, access the latest technology, reduce your risk, increase your flexibility, and enhance your credit rating. If you are interested in leasing your business equipment, contact us today for a free quote and consultation.


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Global Demand for Business Equipment Lease on the Rise

According to a report by Statista, the global equipment rental market size was $316.22 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.4% to reach $454.78 billion in 2025 . The growth is mainly driven by the increasing construction activities, especially in emerging economies, and the rising demand for cost-effective and flexible solutions for acquiring new machinery.

One of the segments that is witnessing a high demand for equipment leasing is the heavy construction machinery rental segment, which is projected to gain $47.1 billion of global annual sales by 2025 . This segment includes equipment such as excavators, bulldozers, cranes, loaders, and graders, which are used for various construction projects such as roads, bridges, buildings, and dams. Heavy construction machinery rental offers several benefits to the customers, such as reducing capital expenditure, avoiding maintenance and repair costs, enhancing operational efficiency, and accessing the latest technology.

Factors Affecting the Global Demand for Business Equipment Lease

The global demand for business equipment lease is influenced by several factors, such as the economic conditions, the industry trends, the technological innovations, and the customer preferences. Some of the key factors that are affecting the demand are:

The COVID-19 pandemic

The pandemic has caused a significant disruption in the global economy and has affected various industries, including the equipment rental market. The lockdown measures and the social distancing norms have reduced the operations and the demand for equipment rental in many sectors, such as transportation, tourism, entertainment, and manufacturing. However, some sectors, such as healthcare, e-commerce, and logistics, have witnessed an increased demand for equipment rental due to the surge in online shopping, home delivery, and medical services. The recovery of the equipment rental market depends on the vaccination progress, the government stimulus packages, and the consumer confidence .

The technological advances

The equipment rental market is constantly evolving with the introduction of new technologies, such as predictive analytics, virtual reality (VR), augmented reality (AR), artificial intelligence (AI), machine learning (ML), and blockchain. These technologies help the equipment rental companies to improve their customer service, optimize their inventory management, enhance their fleet performance, reduce their operational costs, and increase their competitive advantage . For example, predictive analytics can help the companies to forecast the future demand for equipment rental and plan their maintenance schedules accordingly. VR and AR can help the customers to visualize and experience the equipment before renting it. AI and ML can help the companies to automate their processes and offer personalized recommendations to the customers. Blockchain can help the companies to secure their transactions and contracts with smart contracts .

The customer preferences

The customer preferences for equipment rental are changing with the changing needs and expectations of the customers. The customers are looking for more flexible, convenient, and customized solutions for their equipment needs. They are also looking for more value-added services, such as training, support, insurance, and consultancy . Moreover, the customers are becoming more environmentally conscious and are preferring equipment that is energy-efficient and eco-friendly . Therefore, the equipment rental companies need to adapt to these changing customer preferences and offer solutions that meet their requirements.

References:

https://www.accc.gov.au/system/files/Rental%20cars%20-%20an%20industry%20guide%20to%20the%20Australian%20Consumer%20Law.pdf

https://www1.nyc.gov/assets/hpd/downloads/pdf/renters-mitchell-lama/mitchell-lama-rules.pdf#page=8

https://www.theguardian.com/money/2009/jan/04/renting-luxury-goods

http://www.landregistry.gov.uk/professional/guides/practice-guide-25

http://www.bizoptions.com/glossary/h.asp

https://www.statista.com/topics/7873/equipment-rental-market-worldwide/
https://www.businessresearchinsights.com/market-reports/equipment-leasing-software-market-101753
https://www.benzinga.com/pressreleases/23/08/33772517/general-office-equipment-leasing-market-insights-report-2023-2030-114-pages-report

https://www.export.gov/article?id=Leasing-Equipment

https://www.sba.gov/blog/should-you-lease-or-buy-business-equipment



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