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Welcome
to Equipment Leasing Options
Obviously,
as your business grows and evolves, it's essential that your equipment
do the same in order to meet the changing demands of the marketplace.
Leasing makes it more convenient for you to obtain the commercial equipment
you need without over-extending your resources in the process.
Is it always
the best way to go? Not necessarily. The rule of thumb is to purchase
things that will appreciate in value, and lease things that you expect
will depreciate.
But, once
you've determined that the equipment you require falls into the latter
category, there are several reasons that Equipment Leasing Options makes
better sense than purchasing, both for the short-term and down the road:
Potential
Tax Advantages...
Unlike borrowed funds, lease payments are a regular business expense that comes out of your pre-tax income instead of your after-tax profits.
This means that your lease payments may be tax deductible as business
expenses.*
More
Working Capital...
As compared to the 15%-25% down payment typically required to purchase
equipment, leasing requires no large cash outlay upfront. This allows
you to conserve your working capital for use in more productive, higher-return
areas.
Credit
Preservation...
Since leasing represents an entirely separate source of credit, it
enables you to preserve your established lines of credit with banks
and other financial institutions. This not only enhances your borrowing
capacity, but may improve your balance sheet by reducing long-term debt.
Leasing provides 100% financing that can be very flexible in its terms
to fit your budget.
Minimize
Obsolescence...
Leasing gets more mileage out of your money, simply because your monthly
lease payment is a very small portion of the total cost of the equipment.
So, rather than trying to "make do" with obsolete equipment
due to heavy capital investment in its ownership, leasing gives you
the freedom to react quickly and cost-efficiently to changes in the
marketplace.
*Please check
with your tax consultant to determine the exact benefits of commercial
leasing.
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