Have you ever thought about leasing equipment? When you lease, you can:
- Have an additional source of capital, leaving your bank lines free for short-term working capital needs.
- Minimize initial cash outlay – Leasing generally requires only one or two payments up front— which are applied to your future payments—instead of the 10-20% down payment usually required by the banks.
- Realize significant tax savings – Monthly payments on operating leases are typically viewed as operating expenses, unlike loan payments, which could mean significant tax benefits for you. You should always consult with your financial advisor to determine the most tax-beneficial lease for your company.
- Finance 100% of your costs – In most cases, the full amount of the equipment, as well as the service, shipping, installation costs and maintenance can be included in the lease. This spreads the cost out evenly over the term of the lease— freeing up your money to work harder for you.
- Avoid the risk of your equipment becoming obsolete – When you buy equipment, you run the risk that new technology will render your equipment obsolete within a few years, leaving you with equipment that no longer meets your needs and is difficult to sell. Leasing allows you to replace or upgrade equipment to keep your business competitive.