No matter what kind of business you own, you will need some kind of equipment. Conventional wisdom might have you believe that you should spend the money to buy brand new equipment, but it might be in your best interest to lease used equipment instead. Here are just some of the benefits of equipment leasing for your small business.
It Conserves Your Working Capital
The first reason why you should lease equipment for your business is because it conserves working capital that can be spent on your other day-to-day expenses. It also gives you a pre-determined expense every month, which will help you better plan your budget.
It Makes It Easier to Upgrade Outdated Equipment
Depending on your business, you might need to rely on the latest and most advanced equipment to stay ahead. This means having to upgrade your equipment periodically, something that is a lot easier to do when you lease what you need. Many leases will allow you to upgrade your equipment as needed, and even when they don’t it is usually cheaper to pay a monthly payment on something you won’t need for long than it is to buy equipment outright.
It Can Provide You with Tax Benefits
In many cases, equipment leasing provides businesses with a full deduction of payments against your earnings. It may also preserve working capital that you otherwise wouldn’t have access to if you purchased your own equipment.
It Gives You a More Attractive Balance Sheet
Finally, equipment leasing will give you a balance sheet that is more attractive and easier to follow. A lease is considered a business expense, while borrowing money to purchase money goes down as a long-term debt. You will want to avoid debt as much as possible, so that in itself could be considered a great argument for equipment leasing.
For more information about how equipment leasing can help your business, contact the experts at Liberty Commercial Capital today.