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Determining whether equipment leasing or a straight purchase is best for your specific business may ultimately depend on your budget. Even if you’re flush with cash to spend on critical business equipment, there are many advantages to leasing as opposed to owning that you may not have considered. These five advantages of equipment financing and leasing have been compiled to help you make the choice that best suits your business needs. Advantage #1: Easy Technology and Equipment Upgrades New businesses frequently find themselves technologically inflexible as their equipment needs may change almost immediately. This is particularly prevalent when taking over an existing operation. When the latest generation of equipment hits the market, it is essential to be ready for that upgrade and not roped in to using equipment that you own outright. Staying on the cutting edge means survival against your competitors in a constantly changing and competitive market. Keep your business strong and scalable and avoid locking yourself into a long term investment. Advantage #2: Increased Cash on Hand for the Unexpected For a small to medium sized business up-front costs can be suffocating, especially if your requirements include a cost-prohibitive investment in large machinery. New businesses are universally vulnerable, often owing to their lack of liquidity in the initial years. Maintaining a ready store of credit to support your accounts receivable, inventory and other working capital should be a top priority for your burgeoning company. Equipment leasing allows you to conserve your cash for those times when you need it most. It's always recommended to reserve your access to bank lines of credit, especially if your company has been successful in establishing a borrowing relationship with a local bank. There is often no need to use up available funds on equipment purchases that are easily financed via leasing. Advantage #3: Reduced Turn-Around and Acquisition Times Imagine for a moment that your fledgling company wins a huge new contract or you find yourself battling a sudden massive malfunction with existing equipment. You never want to turn down business, but you may not be able to get the equipment you need fast enough to serve your customers. Find a financial partner who will help your business avoid the time-consuming credit approval process required by most banks. A relationship-based lease program can quickly provide 100% financing, allowing you to acquire the equipment you need quickly and without a major cash outlay. Advantage #4: Leasing Companies Understand Your Business First and foremost, lenders comprehend money and need to be carefully educated as to what your business does and how your revenue stream works. Therefore, finding a financial partner who understands your business needs is essential. Banks are often more interested in financing new equipment purchases than in weighing the options available to their clients. While it may offer budgetary relief, used equipment often presents added challenges to bank lenders who are less familiar with the lifespan and resale value of second-hand purchases. A leasing company can work with your budding business to make sure that even your stuffy banker "gets" your business plan. Problem #5: Equipment Leasing Allows Big Tax Breaks When it comes to preparing taxes in the first years of a new venture owners need all the help and advice they can get their hands on. Did you know that leasing programs provide you with substantial tax advantages unavailable with a traditional bank loan? With very little additional effort you can maximize your tax benefits under the recently modified IRS Section 179 which allows businesses to write off up to $108,000 in leased equipment! We saved the best for last. Article Source: http://www.articlewheel.com
Whether you’re looking to arrange equipment leasing for a new business or want to set up equipment financing for existing customers, the service-oriented sales team at Priority Leasing has the experience and dedication to make the leasing process as quick, easy, and affordable as possible. PriorityLeasing, Inc. is an industry leader for both new and used business equipment and technology. Visit us today at www.PriorityLeasing.com.
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