Equipment Leasing overview
Equipment leasing gives you the flexibility to use capital to grow your business. Rack Systems Inc., can provide options to fit any budget. We understand that you must get the most out of every dollar spent and, we will do our best to tailor a lease agreement to fit your requirements.
We can facilitate 24 and 36 month leases, and to further tailor the lease to your budget, we will allow residual values. A few advantages of leasing equipment:
- Upgrade your racking with low monthly payments
- Preserve capital
- Eliminate obsolescence
- Fixed payments through the term of the lease
Equipment Leasing advantages
Leasing pallet racking systems offers several advantages that can be particularly beneficial for businesses with specific needs or limitations. Here are some of the key benefits:
Leasing pallet racks allows businesses to preserve capital since it eliminates the need for a significant upfront investment. This financial flexibility can be advantageous for startups or companies experiencing rapid growth but want to manage cash flow effectively.
In many jurisdictions, leasing costs can be written off as operational expenses, providing tax benefits. This can improve the company’s bottom line, as opposed to owning the asset, which may be subject to depreciation.
Leasing agreements often include clauses that allow for easy upgrades or modifications to the existing system. This is especially beneficial for businesses that anticipate growth or changes in product lines that may require different storage solutions in the future.
Maintenance and Repairs:
Some leasing contracts include maintenance services, thereby reducing the time and resources a business needs to invest in upkeep. This is particularly valuable for businesses without in-house teams equipped to handle such tasks.
Trial and Testing:
For companies unsure of their long-term racking needs, leasing allows for a “trial period” where they can evaluate the effectiveness and suitability of a particular racking system without committing to a purchase.
Leasing companies usually have ready-to-go racking systems that can be quickly installed, helping businesses to speed up their operations without waiting for custom systems to be designed, manufactured, and shipped.
No Resale Hassles:
The burden of reselling the racking systems, when they are no longer needed, falls on the leasing company. Businesses can focus on their core activities without worrying about the resale value or the effort needed to find a buyer.
Leasing typically involves fixed monthly payments, making it easier for businesses to budget and plan for their storage needs.
While leasing offers multiple advantages, it’s essential to read the fine print and understand the terms and conditions, including any limitations or additional costs that may be associated. Still, for many companies, leasing pallet racking systems can be a practical, cost-effective solution that offers flexibility and financial benefits.