Most great generals know how to design winning battle plans. They also know how to use their resources to gain advantages over
enemy. For these military leaders, getting enough tanks, aircraft, ships and armaments into hands of right personnel can spell military victory or defeat.In business arena, gaining access to certain resources and getting them into able hands can also determine success. Many successful business leaders have discovered that equipment leasing can make a significant difference when competing in marketplace. In fact, equipment leasing has become a competitive weapon for business managers who understand how and when to use this helpful financing tool.
Here are some ways savvy business owners and managers use equipment leasing to gain advantage over their competitors:
Developing a Financing War Chest
Equipment leasing allows companies to finance more activities to compete effectively. It supplements other forms of financing, such as equity capital, bank debt, trade credit and mortgage financing. Astute business managers understand that access to a variety of useful financing affords them certain options and gives them an advantage over competitors with limited financing.
Maintaining State-of-the-Art Technology
Being able to acquire and use state-of-the-art equipment and software can give many companies a noticeable competitive advantage. This advantage can be particularly significant in research, product development, marketing and operations. By using equipment leasing, companies are able to better manage technology turnover. Many managers use operating leases to acquire state-of-the-art equipment for fixed time periods. At lease end, they are then able to rid themselves of obsolete equipment by returning equipment to lessors.
Stretching Equity Capital
Equity capital is often most flexible form of business funding. It allows companies to undertake high-impact growth activities like adding key personnel, conducting research and development, and expanding marketing programs. Equipment leasing is dedicated financing. It permits companies to add equipment efficiently. In this context, equipment leasing helps to leverage and stretch a company’s equity capital by freeing it up for other uses. When used properly, overall impact of equipment leasing is to leverage equity returns. High equity returns attract investors and permit companies to source more equity capital in future.
Equipping Talented People to Engage In Battle
Using leasing to get best software and hardware into hands of talented personnel is a competitive advantage. Companies that quickly get equipment into hands of talented workers at every level usually compete more effectively in marketplace.
