Monday, July 10, 2006

0% Equipment Financing – Is it right for you?

Cisco Systems Capital just announced it has extended its Easy Lease 0% finance package to the end of December 2006 in a move to help more small and medium-sized businesses invest in smart data and communications solutions.

Do 0% financing programs make sense for businesses acquiring new business assets?

Here are three questions to ask yourself when considering a 0% financing offer…

First, are you paying a higher price for the item in exchange for the 0% financing? You might be better off asking for a cash rebate or lower price and arranging your own financing.

Second, do you have strong enough credit to qualify for this low rate? If the credit criterion to qualify for 0% financing is too stringent, you may not be approved unless you’re company’s credit score is perfect.

Third, for how long a term is the 0% financing available? If the term is too short, then you may end up with higher monthly payments than you can afford. It might be a better fit with your cash flow to obtain a longer lease term.

Other factors may come into play as well. Be sure to call if you need any assistance in evaluating your lease financing options.

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