To Buy Or To Lease?
Are you in the market for new equipment for your startup company? If so, you are probably thinking about business equipment financing. The most common financing options are leasing and buying. Instead of buying, consider leasing your equipment instead. While there’s no one answer applicable to every business, a lease could potentially offer a more cost-effective solution that protects your credit and keeps your equipment up-to-date. Read on to learn more about the advantages of leasing vs. buying equipment for your business.
Benefits of Leasing Equipment
Save Money: Instead of financing with a large down payment, leasing requires a minimal deposit and low monthly payment designed around your needs and budget. Plus, it is more manageable on your budget than an equipment purchase.
Protect Credit: An operating lease allows you to keep your business credit line open, which allows your business to receive funding for expansion, staffing, and other needs. This also prevents the need to spend time and resources finding someone to extend credit for purchasing equipment.
Stay Competitive: If you don’t want to pick from outdated equipment options, consider leasing. Leasing allows you access to the latest equipment and technology quickly and at an affordable price. This also helps your business avoid outdated equipment and easily make upgrades to newer leased equipment, unlike buying leased equipment.
Avoid Obsolescence: Since machinery and technology evolve quickly, older equipment quickly becomes out-of-date and obsolete. A lease can be structured to match the life of the office equipment.
Avoid Additional Costs: In addition to the cost of the equipment, an equipment lease can also include extra expenses like installation, delivery, and maintenance.
Have Choices: With short-term equipment leasing, you can evaluate if the office equipment truly works for you and your business.
Section 179 Tax Benefits: Lease payments can qualify as an expense and are fully deductible on equipment your business uses. When qualified as an expense, the equipment is also not listed as a capital asset or liability on your balance statement, simplifying accounting and avoiding debt.
Fixed Payments: Lease payments are not affected by market conditions and are fixed for the term of the lease, protecting against inflation and higher payments.
Contact Us About Leasing Equipment
When it comes to leasing equipment, it’s more convenient to inquire from us rather than a leasing company. Southwest Solutions Group® provides a variety of equipment leases to all types of businesses. For more information about the types of leasing options and leased equipment we offer, call us at 1-866-634-0513 or send us a message today.