Advantages of Equipment Leasing

Is it better to lease equipment or purchase it outright?
There is no right or wrong answer to this question, as every business has its own way of doing things. If you own a small or medium-sized business and want to acquire new equipment, it’s important to know some of the key benefits of equipment financing. That way you can make the best decision for your business’ needs. 

Preserves Your Cash Flow

We have this as the number-one advantage of equipment leasing because it’s what business owners and CFOs appreciate most. Leasing saves your much-needed working capital that would otherwise be used if you were to pay cash for your equipment. With an equipment lease program, which is designed around your specific equipment needs and budget, you make affordable monthly payments over time. This allows you to save your money for business expenses, expansion and more.

Tax Benefits

Equipment leasing presents your business with some fantastic tax benefits.  (For full tax benefits check with your accountant or tax consultant)

Avoid Outdated Equipment

Depending on the type of business you own, leasing may help you stay on top of the latest advances in equipment and technology. Being able to make upgrades to newer equipment when your short-term lease is up can give your company a competitive advantage. When you buy equipment, you are stuck with it unless you can sell it. So, if your business uses equipment that is periodically updated with better technology and capabilities, leasing might be the best option.