Equipment Leasing Advantages
Equipment leasing can offer the small business owner several advantages over
other financing options. In my mind, the primary advantage of equipment leasing
is the ability to acquire needed equipment while preserving cash and other
working capital credit lines. Equipment leasing also has the advantage of being
a cost effective way of keeping up with technology in our ever changing world.
As a result, 9 out of 10 businesses lease at least some of their equipment and
why equipment leasing akes up for nearly a third of all capital equipment
purchases each year. In 2006, businesses used leasing to acquire 270 billion
dollars of equipment.
100% Financing
Your lease can include soft costs such as software, training, delivery,
sales tax, etc. These are generally not included with bank financing but are
often included in an equipment lease.
Minimal out of pocket costs
No large down payment or cash deposit is required with your equipment lease.
Generally your first and last payment will be required to get your equipment
delivered. you may also want to consider the advantage of our 1% Solution.
End of lease flexibility
Equipment leasing allows you to take ownership of the equipment, upgrade it,
extend the lease, or simply return the equipment when the term is over.
Customized payments
Equipment lease payments can be structured to match your monthly or seasonal
cash flow or the economic life of the equipment. Equipment leasing also has the
advantage of longer terms and lower payments.
Maximize cash flow
Leasing lets you preserve your cash, working capital and bank lines for
operating expenses.
Tax advantages
Leasing may allow you to write off 100% of the payment as an operating
expense and allows you to pay with pre tax dollars rather than after tax profits
which can certainly help your bottom line. As always, consult your accountant
first.
Avoid technological obsolescence
The leasing company bears the risk of technological obsolescence, not you.
Upgrade provisions can be added in most cases to hedge against obsolescence.
I have another website with more
equipment leasing solutions
and information
"If it appreciates, buy it. If it depreciates or becomes obsolete, lease it!"
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