Leasing a Laser

For whatever reason, in our sales region we do not deliver a lot of lasers under lease agreements. There have been more inquiries about leases of late however so let's talk about them for a few moments.
First off, few, if any, laser manufacturers and/or distributors offer direct funding. It is generally done through a third party funding source. We have several options for our clients and they are also free to use their own agent. We have a very short list of lease companies with whom we will not work.
Second, and this is BIG, many new to leasing are under the misconception that a lease is a trial of some sort. They figure that they'll get a lease and if it doesn't work out, they'll just *send it back*. Nothing could be further from the truth. If you enter a 60 month lease for a laser, you are bound to that 5 year contract with the lease company. Anything other than completing the deal in the agreed to 60 month time frame is difficult and expensive. Again, do not mistake a lease for some sort of test or trial program.
Third, leases have both up and down sides to them. They will, most often, cost more than a bank loan would when all is said and done at the end of the term. However, they give you a chance for some significant tax benefits and they tend to keep credit available for other needs. And regardless of who you are considering, be sure your credit is not checked too often as the checks do lower your credit score. Shop your options without submitting applications at first. Good agents will understand this approach.
At the end of the day, my best advice to you is to ask your accountant whether a lease or a loan of some sort is the better deal for you and your business. Your laser sales professional should not care where you get the money to acquire your equipment. If you're getting pushed in to a specific funding option, I'd suggest that you should ask "WHY??". There may be very good reasons for the salesperson's suggestion but there may be less noble reasoning as well.
To wrap up, leases can be a great option for a laser buyer, but they are not for everyone. Ask around (including your accountant and lawyer) and be sure you completely understand the agreement that you're entering. It will be with you for a long time.

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