Struggling to secure the necessary finances to purchase your equipment? Heavy machinery, office supplies and the latest medical technology are all a significant investment for small businesses. If you’re looking for ways to afford these major expenses without draining your working capital, consider equipment leasing. Here are some major benefits of choosing a lease for your equipment needs.
Unlike a loan, a lease typically doesn’t require you to make a down payment, provide a high credit score or take on the responsibilities of maintaining your equipment. A lease allows you to start using your equipment from day one with little or no money down. You don’t own the equipment outright, but this allows you to be flexible with the length of time you own it. Once your lease ends, you can easily return your equipment and avoid long-term maintenance costs and the risk of owning obsolete equipment.
When your lease is over, you typically have the option of either renewing your lease or upgrading to the latest version of the same equipment. Medical equipment and computer technology are two popular types of equipment that are excellent to lease. Once high-tech equipment becomes obsolete, it quickly loses its value. A lease, however, allows you to seamlessly switch from last year’s devices to the latest and greatest technology.
Because you’re leasing rather than purchasing, you won’t even need to drain your working capital for a down payment. Some equipment leases require a small down payment, but most allow you to get started with no money down.
Leased equipment can also save you money in the long term. Leasing allows you to take advantage of tax credits, as the entire cost of your lease is tax deductible. Combined with the fixed-rate financing that’s standard with most leases and you could save money and stress by simply leasing your valuable equipment instead of purchasing or taking out a loan.
Of course, there are some disadvantages to leasing. If your equipment has little chance of depreciating in value and you have the working capital available for an outright purchase, a lease can cost you more for long-term use.
Compare lease terms today and find out if equipment leasing is right for your business. Check out industry-specific leases for access to a wide range of specialized equipment designed to help you outpace the competition. When you choose the best equipment at no money down, you have the working capital available to take on new clients and grow your business.