Continued growth brings new and increasingly complex decisions surrounding the direction of your enterprise.
New equipment, enhanced facilities, and improved technology are often needed to sustain your competitive advantage.
There are 7 reasons to lease commercial equipment:
Leasing Protects Cash Flow
With leasing, you spread out the acquisition cost of your equipment over time, freeing up valuable capital to expand the business.
When you borrow money from a bank to acquire equipment, you may be asked to provide a down payment of 10% to 20%. In most cases with leasing, your first payment is all that is required at the time of signing. You can finance the total solution, including hardware, software & services.
Protection Against Obsolescence
With Leasing, you can upgrade your equipment at anytime without a penalty. Keeping you up to date with today’s most current technology.
Depending on the circumstance, lease payments may be 100% tax deductible as an operating expense. Consult your accountant regarding the nature of deductions for your situation.
Lease payments remain fixed over the term of the lease, which makes budgeting cash flow requirements is easy.
Leasing Preserves Existing Credit Lines
With lease financing, you are able to get the equipment you need today without tying up other valuable credit lines.
Leasing is Flexible
A variety of lease options are available, the term and frequency of payments can be tailored to fit your unique situation.
J. Paul Getty (Getty Oil), the world’s richest man at the time of his death, is famous for simplifying this often-convoluted discussion:
“If it appreciates in value, buy it.
If it depreciates in value, lease it”