Should You Choose Equipment Leasing?
Are you struggling to find the money you need to purchase equipment to manufacturer your products? Getting a loan from a lender is not as easy as it used to be, especially for smaller companies that are not yet proven in their industry. Equipment leasing is an option you should seriously consider in order to help you get the equipment needed to do your job and to afford it.
With equipment leasing you can also have the benefit of working with brand new equipment, which is not always something that new businesses are fortunate to have. There are a number of benefits that you can expect when you turn to equipment leasing to help grow your company. Here are a few of the things that you can see right away:
- Save money - with leasing you do not need to get a loan and you aren't going to dip into the small amount of money you have saved in your cash reserves. What you are doing is getting the equipment you need by agreeing to a contract. The contract will have a monthly payment amount and you can have the equipment till the end of the contract where you choose to buy it or you choose to exchange it for new equipment. This way you aren't going to have big issues with your cash flow as you aren't tying up a lot of the capital in order to afford the lease.
- New equipment - with leasing you will be eligible to have brand new equipment, which can make your company more productive. You can easily create products that your customers will want to use and can create a larger amount of them, keeping your sales at an all-time high with satisfied customers. Newer equipment not only makes your company more efficient it can also help to provide you with happier employees as well since their jobs will be easier thanks to better equipment that makes doing their job easier.
- Ability to upgrade - another thing that you have to look at when you are using equipment leasing is how easy it will be for you to upgrade to new equipment at the end of the lease. If you don't want to buy the equipment you have been using, you can easily bring in new equipment that will be able to increase productivity.
- Maintenance - with leasing you also are not liable for the machinery as the leasing company will deal with it. They will come in and perform routine maintenance on the machinery to keep it running at its best shape possible. It can save you a lot of money and time as you can get new equipment if the machinery you are using is having malfunctions and other problems. The best part is that there is not going to be an additional cost to you for this maintenance.
- Tax write-offs - when you choose to lease your equipment instead of buying it you actually can deduct the money you spend on your tax returns. It is considered a loan payment. This is a great way to keep your tax bill lower and will allow you to add more to the company's bottom line.
- Easier budgeting - now that you do not have a huge bill to pay for your equipment you will be able to manage your budget a little bit better. You can easily say within the monthly budget that you set as you know how much money is set aside for the lease and how much you need to earn in your sales to pay for the cash flow needs of the business.