What are the benefits of equipment leasing?
Given today’s economic climate and the rapid pace of technological obsolescence, many businesses turn to leasing equipment. Leasing permits you to avoid many of the uncertainties associated with equipment ownership and instead allows you to focus on using the equipment or assets to run and grow your business.
• Preserve your cash flow. With leasing, you need only a minimal initial investment to get the equipment you need, and 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.
• Increase flexibility. 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.
• Never Obsolete. Your equipment never becomes obsolete because you can get the newest technology when your lease expires.
• Tax deductions. Take advantage of the tax deduction limits for equipment as set out 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. 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.
• Maintain your credit. Maintain your credit. Choosing to lease your equipment allows you to keep your available credit line open for operations and short-term financing.
• 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.