Borrowing money’s not always essential when it comes to assets. And if you’ve got small business customers who are thinking of doing just that, it might be a good idea to help them decide if purchasing is the best way to go for their business.
Help them to think about whether leasing is the way forward. If they decide to lease an asset, they wonâ€™t have to hand over a large chunk of cash. That cash could maintain their reserves, be used to invest in more stock, or to develop a new product or service.
Sit down with them and calculate the potential impact to their businessâ€™s cash flow if they were to purchase each asset outright in cash, lease the assets they need, or take out a small business loan.
If they decide to buy, get them to check with their accountant about any planned business asset purchases. Discuss the potential impact the purchase may have on their cash flow, as well what alternative options might be available.
Quickbooks has an article about the pros and cons of leasing vs. buying that’s worth sharing with your small business customers.