The biggest benefit of equipment leasing to a company is that it avoids the necessity of making a major cash investment in a piece of equipment that you need. By borrowing the money for equipment leasing from a lender, you’ll be able to acquire the tools and machinery you need to conduct business, while also keeping your cash reserve intact.
Here are some of the reasons you should consider equipment leasing.
No need to replace equipment
Some types of equipment quickly become obsolete after just a few years, and require placement. When you lease your equipment, you won’t have this problem, because you’re only committed to that equipment for the duration of the lease. After that, you’re free to seek out a brand-new version of the equipment you’ve been using.
Lower upfront costs
Especially when you have a new business which is just starting up, you’re generally on a very tight budget, and it means all funds must be spent wisely. When you don’t have to make a huge cash investment to purchase required equipment and machinery, that leaves cash available for other business needs.
When you are involved with equipment leasing, you know exactly what you have to pay every month, so it’s very easy to budget for your equipment payments. By contrast, when you purchase equipment outright, you are responsible for all maintenance and repairs, and you never really know when any of those will pop up.
With equipment leasing, you will likely be eligible to take a major tax deduction, as specified by section 179 of the US Internal Revenue Code. under this tax clause, businesses are allowed to deduct the amount paid in your equipment lease, so that your overall tax liability is reduced. That of course, will free up more cash to be used for other business purposes.
Would your company benefit by equipment leasing?
Sometimes leasing a critical piece of equipment is all your company needs in order to advance to the next level, and to achieve important goals or objectives. Contact us at Goldendale Capital if you would like to arrange for equipment leasing to help your company grow.