Leasing Electronic Signage
Are there reasons not to lease Electronic Signage?
There aren't many disadvantages to leasing but there are some things you should be aware of.
The interest on an equipment lease can be a little higher than borrowing the money from the bank but as we mentioned the bank will
typically require collateral to approve your loan whereas a lease company will loan the money with a single page application and your signature.
The process of leasing an LED Display can be much easier than borrowing from the bank.
If you use a standard loan from a bank you can pay the loan off early, typically without penalty, and avoid some of the interest. Some
businesses like to borrow from a bank for this reason.
Let's say you buy your LED Sign this year and then have a big increase in your business
and decide to pay it of early next year. Using a bank loan you would only pay interest on the money for the duration that you borrowed it.
Using a lease will not result in a penalty for paying it off early however it won't benefit you in any way either. You will be required to make
the total of all payments for the length of lease that you agreed to.
This issue really shouldn't have much impact on your decision as experience suggests that many business owners have the intention of paying something
off 'early' but very few actually do.
Most often it is better to reinvest that money into another profit center rather than pay off a cash producing asset.
If you have been in business more than two years and your personal credit is in good standing,
leasing electronic signage will be a breeze.
However, there are other factors that can make it difficult to qualify. For instance, independent (non-franchise) Restaurants may have a difficult time
qualifying because so many restaurants go out of business.
If you have been in business less than two years you can still be approved but the rates may be a little higher.
The best thing to do is contact iCatch Displays and let one of our Leasing Experts help you with the process. We have many ways to get your
LED Displays financed. If you have less than perfect credit or your business is new we can still get you into a lease but you should be prepared
to help us with necessary information to show your credit worthiness such as a tax return or trade references.
If you would like to read more about the process of
leasing electronic signage, or the advantages of
leasing electronic signage just follow one of the links on the left.