Benefits of Equipment Leasing
When deciding whether to lease or buy your business equipment there are many things to consider. Both leasing and buying have there advantages, it is just up to you to find out which is better for you, and we offer both options in our office.
When buying equipment the obvious advantage is that you own the equipment. But what comes along with owning the equipment is that you are in charge of re-selling the equipment. Owning the equipment is useful when it has a long useful life and is not likely to become technologically outdated in the near future. There is also tax deductions that you can use in your favor when you buy the equipment but usually only in the first year. Some of the major disadvantages of buying the equipment is having a higher initial expense and being stuck with old out-of-date equipment
When leasing the equipment the main advantage is that it allows you to acquire assets with minimal initial costs. Also when you lease the equipment your lease payments can usually be deducted as business expenses on your tax return, saving you hundreds to thousands of dollars. Also as mentioned above, when leasing you do not own equipment so you are free to lease new, higher-quality equipment.
When deciding to lease or buy your business equipment do not forget to think about everything that is involved. If you do your research and know your item, the decision should be evident. If you have any further questions call us today!
More Benefits of Equipment Leasing:
- Equipment leasing conserves working capital
- Equipment leasing provides 100% financing for equipment acquisitions
- Equipment leasing keeps existing bank and other lines of credit open
- Equipment leasing provides an Additional line-of-Credit for equipment acquisitions
- Equipment leasing helps to overcome budget restrictions and limitations
- Equipment leasing helps to maximize cash-flow
- Equipment leasing does not require down-payments
- Equipment leasing may provide tax savings
- Equipment leasing may provide off-balance-sheet financing
- Equipment leasing provides specific equipment, chosen by the Lessee
- Equipment leasing provides equipment acquired from suppliers chosen by the Lessee
- Equipment leasing protects against operating obsolete equipment
- Equipment leasing hedges against inflation
- Equipment leasing is flexible financing that can be matched to specific customer needs
- Equipment leasing makes a few cents work like dollars
