The overwhelming majority of small businesses lease some portion of their equipment, and since so many of these businesses have found it advantageous to lease, it’s pretty clear that equipment leasing has powerful appeal to company owners. Here’s why it can be so appealing and provide so much benefit to your company.
What Is Equipment Leasing?
In equipment leasing, there is an agreement between your company and the company which actually owns the equipment, in which you pay for the privilege of using the equipment, rather than buying it outright. When the duration of the lease agreement expires, you have the option of renewing the lease, purchasing the equipment, or simply walking away from continued leasing and returning the equipment.
Advantages Of Equipment Leasing:
- Working with new equipment – when you arrange for equipment leasing, the lease expires in something like 12 to 18 months, after which you are free to start a brand-new lease with newer equipment, so that you’re always using the most modern equipment
- Working capital is freed up – rather than make expensive purchases of costly equipment, you can use working capital for daily operations or for business expansion
- No need for large equipment purchases – with equipment leasing, you don’t need to have the cash on hand for purchasing an expensive piece of equipment, but you can still get the use of that equipment, with more manageable monthly payments
- Turning over old equipment – many equipment leases provide the opportunity for you to trade in older equipment and lease newer equipment
- Tax incentives – equipment leasing often carries significant tax credits, which make the entire amount of the lease a deductible on your business taxes
- Fixed-rate financing – rather than be burdened with a floating finance rate which could rise dramatically over the course of the lease, you can arrange to be locked in at a lower fixed-rate
- Short duration usage – for cases when you don’t intend to use a given piece of equipment for more than a year, equipment leasing can be the perfect solution
Who Offers Equipment Leasing?
Alternative lenders such as us at Liberty Commercial Capital, offer equipment leasing and equipment loans to small businesses. If you would like to learn more to see if the loan and leasing terms are favorable to you and your business please contact us today! You can reach a representative at (317) 569-1110 or can email us at email@example.com.