As a small business owner, you probably have a limited budget.
From inventory to fixed costs for wages, there is often little profit made by the time you pay employees, leaving you to scrounge to pay for the equipment you need.
Fortunately, equipment leasing is an option that can help. Because it requires little upfront investment, you can avoid the high cost of loans or credit card debt. Not convinced leasing is the right option for you? Then here are five more reasons why you should think about leasing your equipment instead of buying.
Cash investments limit your revenue flow. Leasing, however, allows you to split costs providing a more manageable alternative via payments. This gives you the cash you need on hand to take advantage of business opportunities without sacrificing on the equipment you need.
Leasing also lets you structure your payments according to your needs. Perhaps a semi-annual payment is better for your business, or maybe a monthly or seasonal payment structure works best. Whatever the case, leasing gives you greater flexibility.
Depending on your industry, you could potentially write off equipment lease payments as a tax liability. Operating expenses tend to provide a greater deduction than payments but check with a tax advisor to see if leasing could be a tax benefit for your business.
Equipment needs regularly upgrades. Your lease can be structured in a way that allows you to match your equipment’s life expectancy. Once the equipment is ready to be upgraded, your lease can allow for a new piece of equipment without paying additional fees.
The majority of finance partners offer finance leasing options for a variety of equipment, depending on your business. Choose an option that’s right for you and save money in the process.
To improve your cash flow, leasing equipment is a viable option. Smart businesspeople use it as a tool to enhance and grow their business. Isn’t it time you joined their ranks? YHEF makes it simple – just fill out an application to get started Growing your Business!