When looking to invest in business equipment, some people don’t realize that there are options other than buying. As your business grows, so will your need for newer and better equipment, which is why leasing is a great alternative to buying. Leasing allows flexibility, financing plans that won’t destroy your credit, and even tax deductions in some cases. Here’s why business equipment leasing is a great idea for you and your business:
Why pay for more than you use?
With leasing companies, the only thing you will have to pay right away is the first and last rental payment, and after that it is as simple as monthly payments. Ownership can be very expensive, with equipment leasing; your equipment will pay for itself with use.
Leasing also allows for businesses to stay up to date with new and improved equipment and technology. Since leasing equipment is not a permanent investment like buying is - leasers can choose to upgrade to newer and better equipment.
If you decide you want to keep your equipment, many leasing companies offer a Lease Purchase program, which allows you to buy the leased equipment at the end of the lease term.
Leasing companies offer flexibility that banks can’t. We will work with you to create an individualized lease arrangement, such as no payments for 90 days, to get set up. Leasing companies understand it takes a little time to get everything up and running, and we offer you the flexibility to customize a program that works for you.
In addition to the Lease Purchase option, there are several other leasing program options that banks can’t match, such as deferred payment, seasonal payments, municipal leases and more.
Avoid unnecessary loans
When looking for loans, banks often advise small business owners to take out a home equity loan for the purchase of their business equipment, which is a bad idea. It doesn’t make sense that you would take out the same loan for a piece of business equipment as you would for a home, because a home is much longer term. With leasing, you avoid confusing loan processes.
With business equipment leasing, your cash is not tied up in loans or equipment. This means that you have more money available for other business opportunities such as advertising or marketing. This extra money could be what your business needs to get your name out there and put that equipment to use.
Leasing companies will give you 100% financing. In addition, if you lease from a reputable company you can get 100% financing for not only the cost of your equipment, but also for labor, installation and training.
To top it all off, leasing can lead to a variety of tax benefits. While loan payments are not tax deductible, lease payments may be fully deductible as an operational expense.
Business equipment leasing provides a many benefits to businesses looking to acquire new business equipment. When you're interested in learning more, contact the experienced leasing professionals at Tiger Leasing for more information on how our equipment leasing programs can help your business.