Financing your business and buying all the needed equipment might be an uphill task especially if you are just starting out. Leasing equipment can boost your business and help you acquire essential but expensive equipment without the full costs. Here are some other benefits of leasing equipment for your business:
Tax advantage
The lessee gains tax advantage by being permitted to claim the payment associated with the leased equipment as part of the business expense. This lowers the company’s taxable income. Accounting for the full payment of the leased equipment is also easier on the company accounting since the financial statements can be found on the general ledger.
Saves money
By leasing equipment, the business can finance 100% of its total equipment costs. This allows your company to use capital to invest in other areas of the business. By using alternative investments, the company can generate extra income.
Upgrading outdated equipment
The business world today is changing rapidly because of the rate at which innovation is taking place. New machines are developed all the time to cater for the new demands in the market. As a business owner, it might be difficult and expensive to upgrade outdated machines with your strained capital. Leasing services help your business to upgrade outdated equipment without purchasing new ones. Leasing equipment can also help you to test new equipment in the market.
Makes budgeting easy
Leasing allows business owners to acquire equipment instantly without necessarily spending a lot of money. In most cases, a lease is based on monthly expenses which do not change. This helps business owners to forecast expenses and budget well. Some of the benefits you will enjoy by leasing include a tailored finance plan, instead of all up front, allowing you to spread costs over monthly payments. This is good for customer cash flow. Customers also enjoy the tax benefits of buying software, depreciation and inflation benefits.
Benefits of leasing equipment – where to find out more
If you’re thinking of getting new equipment for your business, please get in touch with us to find out more about the benefits of leasing equipment.
You can also read our article, “Lease vs Buy,” which shows a comparison of both options when acquiring equipment.
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