Some of the benefits of leasing include:
Cash Flow
Knowing the amount and number of lease payments over the life of the leasing period allows businesses to accurately forecast cash requirements for equipment and hedge against inflation. Leasing also affords a variety of options to match payment terms to business cash flow, whether cash flow is project-based, seasonal, related to expansion, etc.
Tax Advantages
There are two ways leasing can help minimize tax liability. Depending on the structure, lessees can either deduct the entire lease payment or take advantage of the same tax benefits as ownership. Click here to use our easy-to-use Tax Savings Calculator to automatically figure tax savings.
100% Financing
Leasing typically does not require a large down payment. You can finance up to 100% of the equipment cost. In many cases, service, supplies, installation, warranty and other soft costs can be included in the lease. This gives you more money to invest in other revenue-generating activities and makes it easier to afford multiple products or just save it for times when you need cash most.
Preserve credit lines and working capital
Preserve cash and bank lines of credit by using equipment leasing as an alternative form of financing specifically for capital equipment. This option maximizes liquidity and access to capital by setting aside cash and bank lines for other business needs.
Protection against obsolescence
Leasing allows you to match payment plans to the equipments’ expected useful life. Leasing provides flexibility at the end of the term to allow you to either take ownership of the equipment or walk away and acquire new technology. The result is a managed solution that allows business to maintain the most current technology.
