While each business has a vision, challenge, and circumstances when it comes to equipment, it doesn’t change the fact that each one has an important decision. The decision of whether to buy equipment or to lease.
While it can be nice to own your very own equipment, business owners in the past have talked about leasing equipment as a way to be more flexible, have lower risks and can prepare in advance for expenses.
As a result of these things, equipment leasing is a popular decision for small businesses and their growth. Paired up with the benefits listed below, there are some distinctive perks to this decision that you should be aware of.
Similar to rent payments, there is a possibility for payments to be made in advance. This is still an uncommon practice in the industry but this adds further flexibility as a business owner when this is offered.
Good equipment leasing companies are routinely flexible with businesses and put together payment plans and lease agreements that work for them. Even in that agreeable state, you’re still able to negotiate with businesses to reach a satisfying deal.
Small businesses need that initial cash for a variety of expenses. Paired up with buying new equipment or upgrading it being expensive, it’s clear to see how leasing is preferred for small businesses.
By leasing, you’ll be able to save up cash for all kinds of expenses that businesses encounter – marketing, hiring, unexpected expenses, and more.
Leasing equipment arrangements are rental agreements and are tax deductible since you’re using the equipment for business use. You still want to talk to your accountant about the specific write-off benefits of rental payments but broadly speaking, you’ll get a tax benefit from these purchases.
When you have less debt on you, the more windows of opportunity will be there for you.
If you’ve already got equipment laying around, one way to be generating more capital is to sell that asset to an equipment leasing company. You’ll receive a lease contract that’ll be mutually beneficial for both of you.
Furthermore you’ll get a minimum cash down – as is required in the industry. This can give you the cash necessary for short or even long-term financial benefits.
Leasing equipment companies are up to date with the latest and greatest technology in various industries. As such, leasing from these companies will ensure you remain competitive and relevant in your industry.
One issue with old equipment bought new is that it could become irrelevant after some time. While it’s fine if you have the capital to get it upgraded and relevant, you still run the case of equipment laying around collecting dust.
In the case with leasing equipment, you’ll have the option to purchase the equipment outright for a discounted price. After that, you’re usually free to exchange it, upgrade it, or even return it. Nevertheless it becomes significantly easier to handle it if the equipment is no longer a fit for you.