If your capital budget is tight, but you need equipment to establish, maintain or grow your business, don't worry. Do what most other companies do: Take advantage of equipment leasing.

Equipment leasing is a viable and very popular option for companies large and small. In fact, 80 percent of all businesses in the United States lease all or part of their equipment, according to the Equipment Leasing Association (ELA).

That's not surprising, given the broad benefits of equipment leasing. This creative financing option offers business owners the best of both worlds: It allows you to pay only for the value of the equipment that you use during the lease term, rather than purchasing the equipment outright.

More specifically, the company selling the equipment simply makes a direct referral to a leasing company. The lease financing company buys and owns the equipment and then "rents" it to you for a fixed monthly fee over a set period. Leases can range anywhere from $2,000 to $2 million, with terms running 12 to 60 months.

Equipment leasing-which is suitable for any business at any stage of development-can be used to finance all types of equipment. Leases typically involve items such as office equipment, computers, and trucks and vehicles. But equipment leasing can also be used to finance software, hardware, consulting, maintenance, freight, and installation and training costs.

Benefits of Equipment Leasing

Equipment leasing gives you the ability to have the latest equipment for business, plus transfer the risk of technological obsolescence to another company. Leasing offers flexible terms and customized options that take into account your needs regarding cash flow, budget, transaction structure and seasonal fluctuations. And there