When it comes to financing business growth, there are plenty of misconceptions. Equipment leasing is often misunderstood, leading some businesses to miss out on its many benefits. At Johnson Reed, we’ve helped businesses across the UK find the right finance solutions, and we’ve seen these myths hold companies back. Let’s set the record straight.
Myth 1: Equipment Leasing Is More Expensive Than Buying
Many assume that leasing costs more in the long run compared to purchasing outright. However, spreading payments over time preserves cash flow and allows businesses to invest in other growth areas. Leasing advantages include tax efficiencies, predictable budgeting, and avoiding large upfront costs.
Myth 2: Only Struggling Businesses Lease Equipment
Some believe that leasing is only for businesses that can’t afford to buy. In reality, even well-established companies use leasing to maintain liquidity and access the latest technology without tying up capital. It’s a strategic choice, not a last resort.
Myth 3: You Don’t Own the Equipment, So It’s a Waste of Money
Ownership isn’t always the best financial decision. Leasing allows businesses to upgrade regularly so they don’t get stuck with outdated or worn-out equipment. Plus, with flexible terms, you can often own the equipment at the end of the lease if that’s the best option for you.
Myth 4: Leasing Is Hard to Get Approved
It’s a common misconception that leasing approval is complex and requires perfect credit. Exact opposite – when we use leasing to finance mission critical equipment, 95% of the applications get approved. Johnson Reed works with a range of lenders to help businesses secure leasing arrangements that work for them. We also lend around £7 million from our own book each year, meaning we can make fast, in-house choices. Understanding the truth behind business funding myths can help companies make informed decisions and unlock new growth opportunities.
Myth 5: Leasing Is Only for Large Businesses
Leasing is accessible to businesses of all shapes and sizes, including startups. Whether you need a single piece of equipment or a full upgrade, leasing provides an adaptable solution that supports business growth without financial strain.
Leasing Advantages: Why It’s a Smart Choice
Leasing offers flexibility, affordability, and strategic benefits that outright purchases often can’t match. From tax benefits to improved cash flow, it’s a practical solution that allows businesses to stay competitive without major financial burdens.
Ready to Explore Your Options? Don’t let business funding myths hold you back. Equipment leasing can be a game-changer, offering flexibility, affordability, and strategic advantages. If you’re ready to explore tailored leasing solutions, Johnson Reed is here to help. Get in touch today and take the next step in
