Equipment Lease & Financing Specialists
Advantages of Equipment Leasing
Is it better to lease equipment or purchase it outright?
There is no right or wrong answer to this question, as every business has its own way of doing things. If you own a small or medium-sized business and want to acquire new equipment, it’s important to know some of the key benefits of equipment financing. That way you can make the best decision for your business’ needs.
Preserves Your Cash Flow
We have this as the number-one advantage of equipment leasing because it’s what business owners and CFOs appreciate most. Leasing saves your much-needed working capital that would otherwise be used if you were to pay cash for your equipment. With an equipment lease program, which is designed around your specific equipment needs and budget, you make affordable monthly payments over time. This allows you to save your money for business expenses, expansion and more.
Equipment leasing presents your business with some fantastic tax benefits. (For full tax benefits check with your accountant or tax consultant)
Avoid Outdated Equipment
Depending on the type of business you own, leasing may help you stay on top of the latest advances in equipment and technology. Being able to make upgrades to newer equipment when your short-term lease is up can give your company a competitive advantage. When you buy equipment, you are stuck with it unless you can sell it. So, if your business uses equipment that is periodically updated with better technology and capabilities, leasing might be the best option.
Maintain Your Business Credit
You are well aware of how important it is to keep your business credit line healthy… and open. Getting funding for business expansion, staffing and other operational expenses requires solid credit, and having an open credit line allows you to respond immediately in a time of need. Equipment leasing lets you keep your business credit line and strengthen the cash flow of your business.
Better Balance Sheets
A more attractive balance sheet can be yours thanks to equipment leasing. That’s because your monthly lease payment is viewed as a business expense instead of a liability or long-term debt. As you know, having little or no debt on your company’s financial statements is a huge benefit when it comes time to secure business funding.