The Benefits of Leasing Equipment vs. Financing
Whether you are starting a brand new company or you own an established business, you will likely need some new equipment at some point. When you are trying to maintain an edge in your field, having outdated materials can cause you to lag behind your competition, hurting your sales and your reputation. The cost of purchasing the items that are essential for operations can be quite overwhelming, and paying out of pocket can put your business in a bind for the cash you need to operate smoothly. Equipment leasing can assist you with attaining the equipment you need to outpace with your competitors and continue to grow your company.
What Is Equipment Leasing?
An equipment lease is a pretty clear-cut agreement. Instead of purchasing or financing your costly equipment, you will pay a monthly fee to lease it for a predetermined period of time. At the end of your lease period, you will usually be given the option to buy the equipment at a reduced price or to extend your lease for another period of time. You may also choose to return the equipment and terminate your lease.
What Are the Advantages of Leasing Equipment?
There are many benefits of leasing your equipment instead of buying it. Your company can have access to the latest, cutting-edge technology, machinery, accessories and implements for a mere fraction of what the purchase price would be, allowing you to keep up with your production demands and to stay competitive in your industry. This can allow you to have a better handle on your cash flow by enabling you to utilize your available capital for day-to-day operations, growth and expansion, instead of exhausting all of your funds to acquire new items. You can also strengthen your balance sheet with leasing, because your monthly payments will be considered a business expense, rather than actual debt. Many lease agreements include installation and repairs, which can keep you from struggling to find the cash to cover these costs. Equipment leasing can also make you eligible for valuable tax breaks and deductions, saving you even more money.
As you work to keep your business healthy, don’t let the cost of purchasing new equipment stop you from making the upgrades you need. Equipment leasing can provide you with all of the latest tools and materials you need to maximize your success, while granting you more control over the finances of your company.