Many businesses will go to their Bank to obtain finance for their new business and this will be one of your key relationships. But stop for a minute. Your business will need a lot of key equipment in the early years of growth.
This could be IT and software, office equipment, vehicles and machinery. Cash in the formative years of a business is truly critical and whilst you are growing the business it is critical to manage that cashflow. So make sure you use leasing to acquire all the key assets your business needs and spread the cots over 3 to 5 years. This matches the returns your business will get from the investment in those assets and avoid a cashflow crisis in the early years.
Many companies will go to shareholders or equity holders to raise money to then invest in equipment and infrastructure that the business needs to grow. But again stop for a minute. Giving equity away is very expensive. In effect you are giving part of what may become a very valuable business in the long term to simply finance mission critical assets that could have been financed via a third party who does not want a percentage of your business!
Well, we believe in the formative years of a business leasing finance can prove critical to the success of a new venture. The early years are when the business is getting established and both need to invest and have more erratic cashflows until well established.