Leasing your equipment may seem like a good idea but you need to take into account the full impact equipment leasing will have on your business.
Equipment leasing requires personal security – which puts your personal assets (your home) on the line. Our rental agreements for smaller contracts do not require personal security or directors’ guarantees.
|Renting vs Leasing|
|Equipment Leasing||Ezy Rental|
|· Long-term contract||· No directors’ guarantees or personal security required|
|· Personal security||· “Off-balance sheet” item|
|· Directors’ Guarantees||· Purchase the equipment at the end of the term for $1|
|· Balance Sheet Item|
|· Penalties if break-out before end of contract|
A lease is a balance sheet item – which reduces your equity, your ability to borrow and accordingly, your availability of working capital. Rent is an “off-balance sheet” item (like salaries or electricity). This means that equipment rental contracts have no impact on your equity, or on your ability to borrow.
An equipment lease requires a lot of paperwork, personal security, takes time to approve and locks you into a long term equipment lease contract. An Ezy Rental Agreement involves minimal paperwork, no need for personal security, which means that you can get the equipment you need immediately without putting your home at risk.
As you can see, equipment rental offers a level of flexibility that neither purchasing nor equipment leasing can match.
Ready to get started? Complete our no obligation on line application form now!