Every small business has its own unique way of conducting business and approaching the different challenges it faces. Each business owner must decide the right courses to take. These courses will often be very different from the courses chosen by other business owners. However, when the time comes to obtain new equipment, many business owners choose equipment leasing, rather than making a purchase, and there are important reasons to do so. If you are the owner of a small company and need to purchase or replace your machines or technology, consider these benefits of leasing.
1. You can save A LOT of cash.
Equipment financing leaves you with the cash you would otherwise have spent to make your purchases. Leases are often available without the requirement of a down payment, and the monthly payments are often arranged based on your current needs and budget. This option also allows you to hang on to your working capital, so that you can use it for other bills, growth and expansion, and unexpected expenses.
2. You will be eligible for tax benefits when you use equipment financing.
Your payments may be fully deductible. There are many tax burdens that are difficult to face, so take advantage of all available benefits.
3. You have access to modern equipment.
If your small business relies on technology and advanced machinery at all, then equipment leasing gives you the chance to update your equipment every time the term of the lease comes up. If you have purchased equipment, you’ll be stuck with it until you can afford another purchase. Long established and big businesses often have the newest machinery. Your business can get that technology as well when you lease instead of buy.
4. Equipment leasing leaves your credit lines open.
You’ll need credit lines in order to expand your business, to hire new staff members, or to respond to unforeseen difficulties. When these needs arise, you need immediate access to funding. If your credit has been used up by equipment purchases, then you won’t have the additional funding when you need it. Protect your business cash flow by leasing, rather than purchasing, your equipment.
5. Your financial history will look better when you work through equipment financing.
With your monthly lease payment as a business expense, as opposed to a debt, you have better chances of getting the business funding you might need. As the owner of a small business, you understand all too well how small changes in the market can negatively affect your business. A great-looking spreadsheet protects your business during these times.
With this understanding of the advantages available when you lease, instead of buy, you are ready to introduce these benefits to your business. Learn more about our Equipment leasing program or contact us today and find out how you can start leasing your business equipment!