If youre in the market of purchasing business equipment, consider the
advantages of leasing.
Acquire Equipment without Tying Up Your Capital
Most financing requires a large
down payment; however, a lease requires only a minimal advance
deposit. Therefore, you obtain the equipment instantly
for immediate use with little cash outlay and low monthly payments.
Protect Your Lines of Credit
A lease does not affect your bank borrowing power, allowing
you to preserve those funds for other business opportunities or needs.
Maintain a Competitive Edge
Leasing allows you to acquire the latest equipment at an affordable cost. You can then perform
your job more quickly, efficiently and less expensively than
Equipment you need today may not meet your needs in the future.
Machinery and technology can quickly become out-of-date. A lease
can be structured to match the life "usefulness" of the equipment.
Save on Additional Costs
A lease not only covers the equipment's cost, but can also include
expenses, such as delivery and installation.
Take Advantage of a Tax Write-Off
A lease payment is made with pre-tax dollars, while a cash purchase is made with after-tax dollars.
A lease payment can qualify as an expense, which will reduce taxable income and your tax burden.
Since a lease payment can be an expense, it is listed on your
income statement as such and is not shown as an asset or liability on the balance statement.
Unlike bank lines and adjustable rate loans, lease payments
are fixed for the term of the lease and are not affected by
market conditions. A lease cannot be called early, as
a bank can do on a loan. A fixed payment also protects against inflation.