Whether you have a startup or an expanding business, it is logical to save money. You may have more important expenses you need to focus on.
Sometimes, businesses look for other options to acquire office furniture without touching their cash flow. If the cash resource is scarce, a business owner would never risk spending it on office furniture.
Most business owners tend to avoid putting the future of their operation in jeopardy by using precious revenue just to buy upgraded office furniture. But if you really need to replace or add new assets to improve the business, then you should consider asking for furniture leasing and financial assistance at Trade finance Hong Kong.
Take a look at the 8 advantages of acquiring office furniture leasing for startup and expanding companies.
Top 8 Advantages of Office Furniture Leasing
Sometimes, when people come in contact with the word “leasing” or ‘loan’, they may unsure if what they know is truth or myth. And that applies equally when it comes to office furniture leasing.
Leasing doesn’t mean you’re limited to purchase only the new types of furniture. In fact, leasing provides used or remanufactured furniture.
As for the size of your purchase, you don’t have to worry about its limits. Leasing provides you with options when it comes to your purchases. Your options can range from a couple thousand to multimillion-dollar deals.
That’s why it has become a good advantage to somehow ask for financial assistance at Trade finance Hong Kong for all your financing needs.
1 You Can Conserve Your Working Capital
Buying office furniture can help your business generate more income. However, it will also take part in your capital for circulation. A lease offers capital retention that you can use for other parts of your business. You don’t just retain your capital; you’ll also have additional earnings generated from your lease.
2 Gain Obsolescence Hedge
Leasing can help businesses update their equipment, allowing them to gain an obsolescence hedge. You’ll be able to avoid the pitfalls of owning obsolete furniture through leasing. If your lease has “add-on” provisions or “trade-up”, this will answer your business’ need in replacing furniture you have either outgrown or is no longer suitable for further use.
3 An Alternative Source To Debt
Leasing your office furniture helps you preserve traditional funding lines with loan covenants. If you’re an expanding company, then this is a very attractive advantage for you.
Leasing can help you when “tight” money conditions happen during the expansion.
It’ll also be possible for you to pay the furniture you leased “on time” without it being counted as your business’ debt.
4 Gain Tax Advantage
An office furniture leasing is 100% tax-deductible. It’s considered as an operational expense under the 179 IRS Tax Code. Leasing can help you in gaining tax advantages through a $1 buyout lease and the Fair Market Value (FMV) lease.
5 Helps With Your Accounting
Leasing can help you reduce bookwork costs. On or off the balance sheet, you can structure the lease to help you with your accounting needs, giving your operation budgeting integrity.
6 You Get 100% Financing
Office furniture leasing can provide 100% financing. This means even shipping and installation charges come with the package. Such charges are essential for startup and an expanding business because it offers decreased expenses. Charges like those are eliminated as down payment and will compensate balance on your deposits.
7 You Can Have Flexibility
You’ll be provided with payment structures, terms, and end of lease options for your office furniture purchase. You can also have trade-up and add-on options in your lease, all specified depending on your needs.
8 Gain Fixed Rates
Leasing gives you protection against market fluctuations. You’ll be able to predict future operating expenses.
There are leases that offer straight level payments which allows you to know beforehand how much you’ll need to pay. Some offers can be…
– $0 for the first 90 days followed by the remainder of the term.
– $99 for the first 6 months followed by the remainder of the term.
Are you ready to get financial aid for your soon-to-rise business? Take the call today at Trade finance Hong Kong.