Financing or Leasing Office Furniture

You’re ready to set up your new business, you've secured an office space, and you now have to decide how to bring in the necessary equipment before you can welcome any clients. In fact, you need the right look and workspace to attract and retain your staff, too. But new, updated equipment is not just a concern for newly established companies; it also matters to those looking to update their current workplace climate.

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One of the reasons start-ups require so much capital is because they’re starting from scratch – no building, no equipment, no furniture, and no real staff. Tax incentives make purchasing outright an attractive offer, but if conserving capital to reinvest into your business is a concern, leasing is a better option. Many organizations, regardless of size and the current market, choose to reduce their initial risk with a lease.

Why? Buying outright is, frankly, very expensive. Since assets depreciate over time, organizations don’t have the luxury of regular updates with a straight purchase.

Check out these three fundamental ways furniture financing can address your business’ individual needs.

1.    More Flexibility

The financing or lease plan is tailored to fit your specific tax, accounting, or cash flow situation. The terms are not as rigid as you’d have buying your equipment, meaning you can negotiate a longer plan for lower monthly costs. You will be able to secure equipment despite not having a long financial history as an organization. Leasing and financing companies usually look for a business credit history of 12 months or less (instead of the 36 months that capital equipment loans demand) to approve the funds for office furniture.

It also means the solutions will cater to any combination of products you might need, allowing your business to avoid obsolescence and stay competitive by upgrading or expanding when necessary.

2.    Smart Budget

Instead of feeling the pressure of spending capital upfront, the payments are spread out over a few years based on the terms negotiated with the financing company. A smaller initial investment means you not only have better cash flow, but there is also instant ROI with furniture financing. With little expenditure at the start, you can effectively direct available resources to other areas of business that need it most.

Secondly, you will be able to reduce the overall cost of the lease by deducting your regular payments as business expenses on the tax return. *Ask your company’s tax advisor as to how this will work for you so the product can be even more cost-effective.

3.    Less Risk

You’re not investing your capital expenditures on an unknown. Leasing office furniture frees your company from the unnecessary burden that comes with equipment purchases and the risk of running on outdated technology. In fact, there are financing firms that work exclusively in the office furniture sector, so you’ll be working with equipment experts and have their technical support for the duration of your lease.

 
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About Todd

Since taking over as President in 2008, Todd is responsible for all aspects of the Creative Office Furniture. With an extensive background in corporate environments, Todd has successfully negotiated several long term, high revenue contracts.[/author_info] [/author]