Benefits Of Equipment Leasing
Is equipment leasing better than buying business equipment outright? Here at Gray & Creech, we know there is no right or wrong answer to this question, as every business has its own way of doing things.
- Save Cash: Equipment financing saves your 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 lease financing presents your business with some fantastic tax benefits. The IRS allows for lease payments to be fully deductible if your business uses the leased equipment.
- Avoid Outdated Equipment: Being able to make upgrades to newer equipment when your short-term lease is up can give your company a competitive edge. When you buy equipment, you are stuck with it unless you can sell it. Leasing helps to keep leverage on your supplier to ensure equipment operates as it should.
- Better Balance Sheets: A more attractive balance sheet can be yours thanks to equipment leasing. That’s because your monthly lease payment is viewed as a business expense instead of a liability or long-term debt. As you know, having little or no debt on your company’s financial statements is a huge benefit when it comes time to secure business funding.