EQUIPMENT LEASING
BENEFITS OF A BUSINESS EQUIPMENT LEASE
PRESERVE CASH & CREDIT LINES WITH FLEXIBLE BUY-OUT OPTIONS
A Business Equipment Lease is an effective strategy to purchase large assets and has numerous benefits including:
- Avoid Large Down Payments & Delay Purchase Decisions
Business Equipment Leasing allows companies to make large asset acquisitions without having to pay huge up-front costs saving he cash reserves to be available for other expenses. It also allows the business to postpone the purchase decision until the end of the lease period and, if a short-term lease, the company can evaluate the equipment while using it in the business before making a decision to purchase it.
- Easy Old Equipment Disposal & Upgrade Path
A business equipment lease makes it easy to dispose of old outdated equipment and replace it with more current technology, making it an ideal way to finance things like computers and other equipment that has a relatively short life cycle. The business can use the asset for the lease period, then simply return it to the leasing company and replace it with a newer model.
- Preserves Credit & Possible Tax Advantages
Because the lease is not a loan, there is no negative impace on the balance sheet which leaves the business' credit lines free to be used for other forms of financing. Additionally, it's possible to deduct the payments on a business equipment lease assuming the leased asset was used in the business; however, you will likely also lose the benefits of depreciation, so you should speak to your accountant to fully understand the financial impact of an equipment lease.
For more information on Business Equipment Leasing options, and why it may be the best option for you, please click the button below to find out more!