a more INTELLIGENT approach to equipment finance

Solutions for equipment needs that reach beyond rental, but are shorter than long-term

Finding a solution which enables your business to strike a balance between short-term and long-term leasing, brings into focus the challenges some UK businesses are faced with when trying to meet the financial and operational demands of maintaining revenue-producing commercial machinery. The expense of running commercial equipment is quickly outpacing capital budgets and to keep a competitive edge in the global marketplace, your customer contracts must have a higher level of flexibility and incorporate various options for ever-evolving consumer needs.

With that being said, how can you quickly decipher all the options available to you and decide which leasing solution is most beneficial to your business?

Considering rentals

This option will undoubtedly offer your business with the most flexibility, but at what cost? Whether you have a seasonal surge in warehouse activity or maintenance replacements, a rental option can offer you with a flexible solution when acquiring vital equipment, and you will also have the opportunity to return the equipment when the short-term situation expires. Although this is a particular example, many businesses will experience other situations that are less defined.

What if there was a possibility that the length of usage could be extended beyond a few months to a year or more? While this situation is still suited to some rental options, it will come at a premium cost. So the more unusual your situation is and the more flexibility that you require, the higher the overall cost becomes. Carrying such a high premium month after month can become an expensive burden worth considering in advance.

Committing to the long-term

At the other end of the spectrum, thinking long-term is the most cost-effective way to acquire new equipment. By purchasing machinery outright or considering equipment leasing options for a minimum of 5 years, you can dramatically improve cash flow and cash position.

But what if this situation doesn’t apply to you? What if your business only works on short-term projects and you currently have a customer contract for only 22 months? What if your temporary increase in volume is starting to seem a little less temporary but not quite permanent? Choosing to own all of your equipment in addition to cash flow and other problems could be an expensive mistake.

Bank loans are a more affordable way to acquire the assets that you need, but mostly deliver the same “long-term” ownership for a “shorter-term” situation. Leasing from a financial services company is affordable but virtually the same as a bank loan in terms of the payment obligations and its requirement to cover the total cost of the asset. So, how can you strike the right balance for your short and long-term needs?

The solution

Today’s market no longer calls for a one fits all solution, and so many leasing companies are surprisingly naïve about the equipment they are leasing. They place all their focus on generating new sales without gaining knowledge of the equipment market, resale values and understanding how to handle the machinery if it is returned.

But there are a few equipment-driven leasing companies that break the mould. Offering extensive experience of the purchase process, finance, management, sale and disposal of commercial equipment, bringing solutions that go beyond financing.

We always partner with our customers to achieve a more intelligent approach to financing. Somerset Capital has been providing complex, tailor-made solutions globally for over 30 years, whether you are considering rental, short-term leasing, long-term leasing or something in between, we will find a way.

Offering solutions for a wide variety of needs across a wider range of commercial equipment’s, we can match your lease to a shorter customer contract or offer you with the financial benefits of longer-term leasing with flexible turn-in provisions.

About Somerset Capital Group

For more than 30 years, the Somerset family of companies has redefined equipment finance. We take our clients further by providing services around the financing of equipment for mid-sized and large companies throughout the Americas, Asia and Europe. From equipment needs starting under $100,000 and reaching to $25,000,000 and beyond, our unique asset-driven solutions bring a more intelligent approach to your commercial equipment requirements. Learn more about how we can help your company think bigger and go beyond finance.