Equipment purchases can be some of the largest costs a business will see. Financing equipment through partners can help companies avoid large cash payments with smaller monthly payments. Also, this allows the business to purchase or return and finance new equipment at the end of the lease. Payback is set based on the equipment price and the structure will depend on the type of equipment that is being financed. 

Great for —

• Cash flow management by keeping more cash for working capital and avoiding large cash expenditures.

• Purchasing equipment like desktops, laptops, displays, printers, and network equipment that may need to be upgraded within a few years. 

Things to Watch Out For —

• It will be important to understand financing options from the equipment vendor because sometimes it may be more cost effective to finance the equipment from the vendor directly.

• These terms and structures all range based on the specific equipment that is purchased. You will want to work with the equipment vendor to make sure that the structure works for all parties.