Equipment Leasing: Choosing the Right Company for Your Small Business
Owning your own business comes with its fair share of expenses, especially when it comes to commercial equipment. Rather than drying out your business account and possibly your personal bank accounts trying to cover the cost of owning your own equipment, consider equipment leasing. Leasing your equipment rather than buying it outright is the ideal way to get the equipment you need without taking on a debt you don’t want.
Much like when you finance a car, equipment financing allows you to pay for the equipment your business needs in small, regular payments spread out over a number of years rather than a single lump sum upfront. After you’ve reached the end of your terms, you can either give the equipment back or buy it for a discounted price that factors in depreciation as well as the amount you paid while financing the equipment.
Besides monthly payments, there’s much more to enjoy when it comes to equipment leasing. For instance, there’s no need to gather a large down payment before you’re approved for financing, which is sure to bring you a great deal of relief. Another great thing about equipment financing is the fact that you don’t have to worry about being left with outdated commercial equipment that is all but useless and difficult to unload elsewhere in a way that’s efficient and affordable.
When the next tax season rolls around, you’ll find it quite advantageous that you’ve leased your equipment. This is because equipment leasing often qualifies for tax credits, which means you very well might be able to write off a portion of the payments you’ve made. You’ll want to make sure you sit down with an accountant once you start leasing so you know just how to write off your payments properly.
Set Yourself Up for Success
While financing offers many advantages, you still want to do everything you can to ensure you’re approved. For instance, figure out your monthly business budget so you know how much of a monthly payment you can afford for leasing. It’s also best to only consider leasing if you plan on using the equipment for fewer than three years. Any longer than that and you’re likely to be better off considering a traditional loan.
Explore the full range of options for equipping your business to take it to the next level without crippling your finances. Learn more about financing commercial equipment today by contacting a leasing professional today.