The Benefits of Forklift Leasing - Why it's a Smart Choice for Your Business
Unlike purchasing, leasing forklifts turns a capital expense into a monthly operating expense. This preserves your fluid cash and makes budgeting easier. Since a forklift is only helpful for 7 to 10 years, it makes sense to lease rather than buy one.
Cost-Effective Monthly Payments
Upgrade your forklift fleet with the latest technology if you're a proliferating business. Leasing can allow you to do just that while staying within budget. Forklift leasing Houston, TX breaks up the cost of a forklift into small monthly payments that can be easily budgeted and allocated to the appropriate department. This reduces upfront cash expenses and preserves company lines of credit for other essential projects. Depending on the type of lease you choose, it can also include maintenance costs in the monthly payment, saving you even more upfront money. The best forklift leasing options are also flexible and can be extended or shortened if necessary to meet the needs of your business.
If your business sees a temporary surge in work around the holidays or you plan to move into a new space and need more equipment but want to purchase something other than outright, leasing may be the right choice. You can lease forklifts when needed and then turn them back in or choose a fair market value (FMV) lease that allows you to purchase them at the end of the term. Leasing can help you update your forklift fleet with the latest technology and avoid straining your hard-earned cash. This can improve productivity and reduce downtime caused by using older, less-efficient forklifts. It also helps to balance your fleet by reducing costs during the slower season and increasing it during busy times.
Leasing equipment can be more economical than buying if your utilization rate and work volume are predictable over several years. You have limited CapEx and want to decrease upfront cash outlay. You use the equipment for high hours, and your operation has a high frequency of repairs and service. A lease can provide tax deductions for the monthly payments and equipment costs if your business qualifies. It can also save you money on maintenance because a service program is often built into the lease. If you have a large contract, leasing can help you right-size your fleet to meet the duration of the contract. And if technology advances, a lease can be written to allow you to upgrade to the latest forklift models. This can improve productivity and reduce downtime.
The flexibility offered by forklift leasing allows your business to upgrade equipment more often. This can increase productivity and allow your company to stay competitive with new technology. Rentals typically include service and maintenance fees, so there is no need to come up with additional funds if your forklift needs repairs. Some forklift leases are structured as a $1.00 purchase option or total payout leases, which are suited for companies that intend to buy their forklifts at the end of their lease term. However, these options come with higher monthly costs than an operating lease. A flex lease with opt-out points is designed to accommodate high-hour usage and is an ideal solution for companies with client contracts that might terminate early. This option also allows you to return your forklifts to avoid buying them at the end of the lease.
Leasing gives you access to new forklift equipment, which means less downtime. Your team will be able to get to work immediately instead of waiting for the forklift you have to arrive at the dealership. Another benefit of leasing is that you won't eat into your capital like when you purchase. Turning the cost of a forklift into small monthly payments allows you to keep your lines of credit open and allocate the money to other projects when needed. Finally, continuously operating the latest equipment will make you more competitive with your materials handling capabilities. As technology advances and your business grows, you can refresh your fleet with the newest forklifts without a significant cash investment.