Your business is up and running and you’re so excited, but what about equipment costs? You’ve spent all that money on products that you might have overlooked critical equipment you need to keep your business going. But with little cash left over, you might not know what to do next. The solution? Equipment Leasing. Here are 4 benefits of leasing equipment instead of buying.
Leasing saves you big on upfront cash costs. This gives you more revenue to manage day-to-day business expenses. Other expenses like expansion costs or unexpected business expenses can all contribute to your need for cash flow. Also, a lease gives you a chance to budget more efficiently. You know exactly how much you owe each month and can factor that into your costs without tapping into cash flow needed for other business expenses.
While every business is different, nearly all will require an upgrade in their business equipment at some point. Staying up to date with the latest technology might be important to your business, and leasing gives you an opportunity to upgrade your equipment when and how you want. You also have a chance to decide on the length of your lease, which allows you to drop old equipment and replace with what you need to keep up with the competition.
Every business needs all the tax deductions they can get. In most cases, lease payments are 100% tax deductible. Add in the fact that you’re saving your working capital for as-needed purposes, and you find yourself with a great way to save big during the year and in tax season. Chat with a tax professional to determine what’s best for you.
If your equipment needs are minimal, then buying equipment might be a better option. But if you expect to put down thousands for your equipment, look at leasing as an alternative option.