Vendors have assembled packages to help your shop expand its capabilities.
The key is “identifying the market opportunity and understanding the potential value in terms of added revenue and margin as an overall part of the existing business,” he says. “Sometimes added value comes in the form of expanded capability or increased reach to existing markets. (In) either case, the reward always has to be greater than the risk in order to make it a viable decision.”
8 Leasing Tips
Considering leasing equipment, but not sure if it’s right for your shop’s particular needs? We went to Stephanie Canales, director of Financial Services for Panoply Finance, to see if she had any suggestions for print providers and how leasing might help their bottom lines. Based in Louisville, Colorado, Panoply (panoplyfinance.com) specializes in funding options and customized lease structures for wide- and grand-format printing equipment. Canales offered the following tips for shops that are evaluating leasing programs, and how leasing can prove to be beneficial:
• Take advantage of the increased Section 179 Tax Deduction for 2013 and write off up to $500,000 worth of equipment this year. The increase this year provides substanial tax breaks for capital-equipment purchases. “The break you receive could be worth a full year of lease payments,” says Canales.
• Consider leasing equipment to keep your lines of credit open with your bank for operations and short-term financing needs.
• Preserve your company’s cash flow with affordable monthly payments – versus a large outlay of capital if you were to buy the equipment outright.
• “Don’t be intimidated by the lease process; it’s usually quite simple. An easy, one-page application, a few questions about your business, and a quick 24- to 48-hour turnaround time is usually all that’s required to get an approval.” Most leasing and finance companies aim for fast turnaround, she indicates.
• Be sure to structure your lease so you can return your equipment at the end of the term – “this helps you to avoid obsolescence and stay on the cutting edge of the technology curve.”
• Ask about financing 100 percent of your new- or used-equipment package. “There is usually room for soft goods such as software, consumables, installation, and training.”
• Talk to your accountant to see what is the best solution for you and your operation. “Generally, creative payment ideas as well as various end-of-term buyout options can be tailored to meet your company’s financial needs.”
• Finally, says Canales, “Find someone you trust. It’s your business and your livelihood.”