Leasing Information
The number one reason many businesses decide to lease business equipment is to not restrict cash flow. Without restricting cash flow, your business can maintain liquidity and have a competitive edge by minimizing tax liability.
- The primary advantage of leasing business equipment is that it allows you to acquire assets with minimal initial expenditures. Because equipment leases rarely require a down payment, you can obtain the goods you need without significantly affecting your cash flow.
- Another financial benefit of leasing equipment is that your lease payments can usually be deducted as business expenses on your tax return, reducing the net cost of your lease. In addition, leases are usually easier to obtain and have more flexible terms than loans for buying equipment. This can be a significant advantage if you have bad credit or need to negotiate a longer payment plan to lower your costs.
- The turn around time of a lease is usually quicker than a loan approval. You can expect a lease approval much faster than you can of a loan approval.
- Leasing is the perfect tool to help establish credit for future purchases when your business grows. It helps you acquire more equity and in turn help acquire more equipment or help diversify your business.
- Leases are usually more affordable, since payments are lower than loan payments. At the end of the lease, you usually have an option to buy so that the equipment will be yours to own.
