Why Get a Small Business Equipment Lease?

Whether you’re a new business owner or an established company, you may be faced with the challenge of equipment financing. Should you buy new equipment or get a bank business loan? Better yet, should you apply for equipment lease financing?

What advantages can equipment leasing bring to a small business? In this article, let’s talk about the top reasons why you should consider leasing commercial equipment.

Save your business budget.

Having a steady cash flow is important for any business. When you lease equipment, you can use your available cash for other expenses and save the rest for emergencies.

100% Financing.

Yes, no down payment is required to lease equipment. Unlike bank equipment loans where you pay the cost of taxes, shipping, and installation separately, leasing is 100% financing, meaning everything else is included in your payment.

Get access to the latest equipment.

As technology continues to advance, newer and better models of equipment are constantly being introduced to the market. Obviously, the latest models would cost more than the older ones. The price of the equipment may not give you the option to purchase a state-of-the-art equipment. On the contrary, by leasing, you can choose any type of equipment you want without worrying about the high price.

No to Obsolescence.

As a result, the equipment you buy this year could be outdated in years to come. The purchase limits your options since you have invested your money in the equipment you bought. When leasing commercial equipment, you can always have the option to keep or replace the equipment with better equipment.

Release your company’s line of credit.

If you’re going to take out a bank loan and use the money to buy equipment, the high price of the equipment can eat into your business line of credit. When you lease equipment, there’s no need to exhaust your business line of credit. If necessary, you can still take out a loan and use the money to buy more supplies, for marketing purposes, or to hire more workers.

Pay On Facility.

Only equipment lease financing allows you to pay for equipment as you use it. There is no need to shell out a large amount of cash right away. You can even choose an installment plan (monthly, quarterly, yearly, etc.) that is more suitable for your financial capacity, since most leasing companies offer flexible payment terms.

Enjoy Tax Benefits.

Unlike purchased equipment, leased equipment is 100% tax deductible. Imagine how much money you can save with the tax benefits alone. Every penny you can save counts for a lot, especially if you’re just starting out in business.

Never Complicated.

The process of applying for a business equipment lease is much simpler than applying for a bank loan or an equipment loan. You can shop around and compare internet leasing companies and apply online as well. Most leasing companies give approval in 24-48 hours. As soon as it is approved, you can expect to receive the equipment you ordered within the next 3-4 weeks.

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