Acquiring equipment for your business doesn’t have to mean a traditional bank loan or cash purchase that eats up your working capital. Through leased-based equipment financing, today’s businesses have better options when it comes to financing their equipment needs. And the best part is, nearly any type of equipment used in your business can be leased. Here’s how leasing can work for you:
It Frees Up Your Capital
Invest capital in your core business at a higher rate of return instead of buying equipment outright, which locks up your capital in depreciating assets.
It Saves You Money
No more hefty down payments for loans on equipment. With a lease, your up-front expense is typically only one to two monthly lease payments.
It Buys More for Your Money
Stop sacrificing better quality equipment because you can’t justify the cash price. Leasing affords you state-of-the-art equipment at reasonable monthly payments that your budget can handle.
It Gives You Greater Flexibility
Now you can expand your business on an as-needed basis.
It Provides Tax Benefits
Improve your bottom-line earnings and enhance your credit profile through leasing. Typically, equipment leasing may be deducted as an annual operating expense. On the other hand, a loan shows up in the full amount as a liability on your balance sheet. Be sure to talk to your tax advisor for more information about leasing may affect your specific tax situation.
It Frees Up Your Lines of Credit
Since you’re not drawing on your lines of credit when you lease, they’re available for other important business needs.
It Makes Budgeting Easier
Fixed monthly payments mean no surprises when interest rates fluctuate.
It’s Quick and Easy
A lease application can get approved in as little as 24 hours and can be as simple as a one page document.