Finance And Accounting

BENEFITS OF EQUIPMENT LEASING

Buying and maintaining equipment is expensive. As soon as you invest in a piece of machinery, it's only a matter of time before a new version comes out, making yours obsolete or inferior. With high costs involved in owning and operating equipment, many small business owners opt to lease rather than own.


What are benefits of equipment leasing?

Given today's economic climate and the rapid pace of technological obsolescence, many businesses turn to leasing equipment. Leasing permits a business to avoid many of the uncertainties associated with equipment ownership. Instead, it allows you to focus on using the equipment or assets to run and grow your business.

  TOP FIVE BENEFITS 

 

               1. CASH FLOW IS KING 

Preserve your cash flow. With leasing, you need only a minimal initial investment to get the equipment you need. You can comfortably spread your payments out over time. This allows you to preserve your working capital for the operation and growth of your business.

 

             2. ENHANCED FLEXIBILITY 

Increased flexibility is key. Your equipment needs will grow and change along with your business. With equipment leasing, you have the option to take on additional equipment or upgrade the equipment you currently possess.

 

              3. STAY CURRENT 

You will be up-to-date and current with the key drivers to your business. Your equipment never becomes obsolete because you can get the newest technology when your lease expires.

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                 4. MINIMIZE YOUR TAXES 

Tax deductions matter. Take advantage of the tax deduction limits for equipment as set in section 179 of the US tax code. In some cases, as much as 100% of the equipment cost, up to a specified limit, can be immediately deducted from your taxable income.

 

             5. KEEP A STRONG BALANCE SHEET

When structured properly, leases may not be disclosed as a liability on your balance sheet. This allows your company a better chance to obtain or increase your line of credit at a bank.

 

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