Whether you run a business that relies on office equipment like Xerox machines, printers, and computer systems, or have a warehouse that depends upon heavy equipment for daily operations, business equipment leasing is likely a better option for your business than having to purchase equipment outright, whether you use cash or obtain a loan. Three major reasons why business equipment leasing is a better option are:
It allows you to spend your business lines of credit and cash freely on other investments
It allows your business to continuously boast top-of-the-line equipment at all times
It saves you money each year by being tax deductible
1. Equipment Leasing Expands Spending Power
Through business equipment financing, companies are not required to come up with large quantities of money for the purchase of new business equipment, whether it be office equipment or trucking equipment. Equipment financing companies only supply the most updated technology in their products, and businesses are able to take advantage of that equipment until the next model comes out, at which time they can upgrade. There will always be a monthly payment, but it is no more than the payment on a loan would be and the business is never stuck with a paid off, yet outdated (and therefore useless) piece of equipment. This is a frequent issue for companies whose business demands expensive equipment, and the problem is alleviated simply through business equipment leasing.
2. Business Equipment is Always Updated
Business equipment financing ensures that your business' tools and equipment is always top-of-the-line and utilizing the newest technology available. When companies buy their equipment, they commit at least several years to that equipment and if it breaks, they must incur the cost of replacement or repair. With business leasing, business equipment has certain reliability assurances and warranties and, even better, the business will only be in possession of that equipment for the length of the contract. When the contract expires, the business owners are free to lease newer equipment that will work even better for their operations and free to begin financing office supplies with new contracts.
3. Equipment Leasing is 100% Tax Deductible
All business owners know that anything that is tax deductible is worth looking into, and something that is consistently tax deductible and a huge factor in business operations is definitely something to go with. Like purchasing new business equipment, business equipment financing is 100% tax deductible. Unlike purchasing equipment outright, however, with equipment financing the tax write offs can be made for each payment, every year, for as long as the equipment leasing is under contract. Over time, this means the equipment leasing provides even more savings in taxes to the business owner without costing him the upfront cost that a purchase would. In this way, financing office supplies and equipment is a win-win!
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