Small business owners are constantly searching for ways to grow their companies while maintaining a healthy budget. One way to grow your business is an investment in new equipment. But for some business owners, this may not be an affordable option. Many business owners may be able to solve this problem by financing the new equipment that can fuel the growth of their business.
Business equipment can be expensive. It can also be devastating for a business owner to spend a lot of money on the latest technology only to have that equipment become obsolete a couple of years later.
Equipment leasing allows business owners to obtain the equipment they need without huge upfront costs. This will save money and provide the business owner with the opportunity to test out equipment they are unsure about.
Business owners commonly lament the fact that a few months to a year after making a major equipment purchase, upgrades to the equipment occurs. This can make the purchased they made just a short time ago seem outdated. When equipment is leased, business owners can contact the company that leased them the equipment and ask for an upgrade to the latest version of the equipment. Choosing this route will allow you to beat the competition to the punch in regards to keeping up with the latest trends in technology without putting an unnecessary financial strain on your business.
Federal tax laws provide business owners with a number of tax advantages when they choose to lease equipment instead of buying it. In fact, Section 179 of the federal tax codes gives tax-exempt status to leased equipment. Many business owners either overlook or underrate tax advantages to financing their business equipment.
Accidents can happen even when workers are extremely careful with equipment. Companies that purchase there equipment will be responsible for the complete cost to make the equipment operational again on their own. When equipment is leased, some of the burdens for the cost of repairs can be eased by finance lenders. This will decrease potential downtime experienced by your business and lessen the cost of returning to full operational capabilities.
Improved Balance Sheet
Lease payments that are paid monthly are not viewed as debt. They are viewed as monthly business expenses. Your company balance sheet looks much more attractive without excessive debt and puts you in a position to secure any future financing your business may need.
New equipment can provide a great opportunity to expand your business. However, the cost of this equipment can be more than your business can tolerate. Financing can make the equipment you need more affordable and provide a number of other positive benefits.