loan insurance - do you need it?

When you borrow money from a financial lending institution, there are many times in which you will be offered insurance to protect the debt. This insurance can provide coverage in the event of your death, if you get injured and cannot work or if you suffer from an illness or injury that leaves you disabled and no longer able to work. Is this insurance policy worth the money that you are asked to pay for it? What are the chances that you will actually use such a policy? This blog will show you all about loan insurance to help you determine if it is an investment or a waste of your money.

Four Benefits Of Leasing Your Business's Equipment


Too often, a business will finance their new equipment instead of leasing it. However, there are several advantages to leasing your capital equipment rather than purchasing it. The following are four of the most significant advantages your company can realize leasing your equipment.

Your business will have a stronger balance sheet

When you finance the purchase of your new equipment, you will be carrying a liability on your books. Naturally, this will reduce the worth of the business on its balance sheet. But when you lease equipment, the money spent on the lease is a part of a company's operating expenses and is a deduction from your business's gross revenue. Because there is no liability, your company will show a greater capital worth on its balance sheet.

It protects your company's credit line

No business has unlimited credit, so everything that is financed will reduce the amount of available credit that a business has. By leasing your equipment, you will have more credit available for critical situations. This can be especially important when an opportunity arises unexpectedly to expand your business. If you have chosen to finance the purchase of new equipment, you may have a lot of your credit tied up in the purchase of your operating equipment.

Access to the latest equipment on the market

You never have to worry about having outdated equipment when you are leasing. Not only can you have the latest technology, but if there is a new and better model that comes to market, you can upgrade to this equipment. You are not stuck with a piece of equipment that you are still paying for, and may owe more on a loan than the equipment is worth.

Less commitment to the use of the equipment

When you decide to lease a piece of equipment, even with a long-term lease, the commitment of time and resources is much less for your company. You will not be responsible for repairs and upkeep of the equipment, so this frees up some of your company's cash. You also have the advantage of using a piece of equipment for short-term projects instead of using the equipment over the course of many years.

Leasing is often a better option for a business, but it can be dependent upon the particular industry you are operating in. In addition, there may be other factors involved than those mentioned above. You should, however, consider leasing before you decide on purchasing your equipment. For more information, to an equipment leasing professional like Westar Financial Inc.


24 September 2015