Software is becoming an integral part of almost every business. It can facilitate various processes, including time management, quoting, billing, and accounting. To stay up-to-date and avoid spending a lot of cash, many people now borrow the necessary programs from software leasing companies. Today, we’ll have a closer look at how this works and whether it could be a good option for you.
How Do Software Leasing Companies Work?
To start and run a small business, you need various kinds of software, including time-tracking programs, project management software, accounting software, payment transaction software, and software for communication. If you want to buy all the various programs, you can easily spend thousands of dollars upfront. This isn’t always a good idea because it takes away money from other areas of the business and makes you more inflexible.
Software leasing is a great alternative, since it allows you to borrow the programs instead of buying them. It works just like leasing a car or another piece of equipment. To start, you simply get in touch with a lender who offers the software you need.
Getting Approved for a Lease
Almost everyone can get approved for a lease of under $50,000. In fact, almost eight in ten US businesses have some kind of equipment lease. But if your company is very new, you might need to act as a guarantor. Depending on the situation, you might also need to provide documentation, including a business plan, bank statements, projected earnings, and contracts with suppliers.
Once you’ve put together the relevant information and submitted it to your lender, you can get approved within a few hours or days. Then, an account manager will be assigned to you, who can help you find the products you need and put together a lease that works well for your situation.
Types of Software Leases
Every business is different, which is why many software leasing companies offer various types of leases. Traditionally, an equipment lease lasts for several years, but software leases might be shorter, especially if the technology is updated on a regular basis. This is a great advantage because it allows you to keep up with the newest developments.
Your account manager can tailor your lease to your situation. For example, if you’re a startup, it can take 18 to 24 months for your business to become profitable. Your lender can delay payments for a few months, which gives you a chance to pick up your first customers and get past the initial phase. If your business is seasonal, you might be able to pay more in the busy season and less during the quiet period.
Leasing the software, you need to run your business could be a good idea because it helps you spread out the cost and allows you to stay flexible and up-to-date. If you’d like to get started, you should contact an equipment leasing company. They can help you to get approved and assign you an account manager who will put together a suitable leasing package that takes into account your business’s size, budget, and individual needs.