Lease verses Outright Purchase
In this section we will look at the different ways in which you can purchase a laser.
The two main means of funding a laser purchase are:
- through an outright purchase or
- some form of finance agreement
The finance agreement could be in the form of a bank loan, or Hire-Purchase or Lease Purchase arrangements
You may also consider renting?
Renting a laser is an option but generally only works for second-hand equipment. This is because the expense of new Lasers means that the price of renting is most often higher than the price of purchase.
Does your manufacturer offer a buy back guarantee?
This is a way in which the supplier guarantees the future value of your machine which is equivalent to the purchase price minus a rental figure.
As a result, if your business is not as successful as your would hope and the purchase of the laser begins to be seen as a liability rather than an asset, you stand to lose a much lower value of money. On the other hand, if the business meets or exceeds your expectations, your monthly payments are reducing the capital value owed on the new system. Put another way, it is a bit like the comparison of renting a house and buying it. Pure rental is just money spent with nothing tangible to show for it. But buying the house, knowing that it has a resale value if you need to move on, is increasing your business net worth!
Alternatively, a Bank Loan for a laser system purchase can represent a good funds generation source, as long as you have good relations with your bank manager. The bank will know your trading history and can also incorporate both business and personal assets in to their risk calculations when considering whether they are willing to lend the money.
While banks generally offer good rates for the purchase of a laser, you do run the risk of suffering personal loss from any form of professional failure, with the Bank potentially seizing personal assets to repay the loan in cases of payment default.
At the laser market we can also offer Lease Finance or Hire Purchase solutions through an independent finance house - and this is by far the most popular method of purchasing a laser, with up to 100% finance available of the purchase, or a deposit payment to keep the monthly repayments down.
Download our FREE Funding Options paper, for an impartial look at the choices available.
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