Capital Equipment Loans and Leases What Startups Need to Know

first_imgFinancing equipment for growth is a necessary part of a startup’s development. But as with all things, there is a right and wrong way to go about it. The latter involves extracting precious equity from the company, thus diluting its value. Venture capitalist Fred Wilson advises against this form of financing. Instead, he suggests using capital equipment loans and leases to procure servers, routers and other computer hardware.An equipment loan will allow you to finance your equipment with all of the typical stipulations of a loan. An equipment lease functions similarly to a vehicle lease, where the lessor owns the equipment but leases it out for a set monthly payment for a predetermined number of years. At the conclusion of the deal, the equipment may be purchased for a flat rate, writes Wilson.By choosing one of these financing strategies, a company can get the equipment it needs without sacrificing invaluable equity. For more on this topic, read the full article by Wilson.AddThis Sharing ButtonsShare to FacebookFacebookShare to TwitterTwitterShare to PrintPrintShare to EmailEmailShare to MoreAddThislast_img read more

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