The Top 3 Equipment Leasing Advantages
A lot of business owners are hesitant to lease equipment. There’s a certain amount of comfort that comes from owning your assets, and the last thing you want is to get locked into a long-term contract that doesn’t help your company. However, if you can get past those initial concerns, equipment leasing might actually be the best thing for your business. Before you make any decisions, consider these essential advantages.
Product Updating Through Equipment Leasing
When you buy outright, the thing is yours. Should you decide you want a newer model, you’ll just have to buy again. That’s the biggest issue with ownership, and it’s one that’s immediately eliminated when you decide to lease. Almost all lessors will allow you to upgrade equipment at the end of your contract,and most of them are happy to adjust the terms if you want to bring ina new apparatus in exchange for one that’s a little outdated. This system enables you to stay at the forefront of your industry without worrying about being held back by equipment.
Tax Deductions & leased Equipment
Everyone knows you can write off business purchases. What fewer people understand are the tax benefits that come with equipment leasing. Most of the time, you can declare at least a portion of the cost, and in many cases people are able to write off the entire lease. Your write off will depend on the type of equipment and its usage, so it’s worth discussing this situation with an accountant before you file your business taxes. At any rate, you can expect to see at least a modest deduction on your taxes, even though you’ve avoided the massive costs associated with buying equipment outright.
Get Steady Cash Flow
Perhaps the most important benefit of equipment leasing is the one you’ll experience the moment you sign your lease, and that is financial breathing room. Business owners often find themselves in dire straights right after making a big purchase, and that affects the company in a lot of different ways. What’s the point of buying a new rig if it means you can’t afford the gas to make it run? When you lease,you take on a monthly payment that won’t cripple your business, and the importance of that can’t be overstated.
There are a number of reasons to buy your own equipment, but these three advantages make equipment leasing a very tempting option. Take a close look at your finances and weigh the benefits, and there’s a good chance you’ll conclude that a lease is the way to go.