The Advantages of Leasing Equipment for Your Business
Leasing equipment will provide businesses with many benefits, such as no up-front costs and ownership risk. Obtaining equipment through a lease is one of the most efficient ways for businesses to stay at the top of the industry’s development curve. With the constant development of new equipment and technology, leasing equipment is substantially less expensive and allows you to keep your technology current.
Leasing equipment is much easier to finance than purchasing equipment. Banks usually require two to three years of financial records before extending a capital equipment loan to a business and some new companies that need equipment do not have these records. Leasing companies, on the other hand, generally only require six months to a year of credit history before approving your office equipment lease. In addition, equipment leasing companies often do not even require down payments, and instead just collect a refundable security deposit. For equipment loans from banks on the other hand, a down payment of up to 25 percent or higher is often required.
Leasing equipment can make it easier for businesses to keep up with the latest in technology. Leasing is an attractive choice for those companies who rely on the most cutting-edge technology. A series of leases that are short-term will cost less than buying new technology and equipment every year. Therefore, leasing actually gives you the capacity to afford the latest equipment faster.
Repair And Maintenance
Repair and maintenance is a major concern for any piece of equipment. A leasing agreement will help businesses avoid any costs for repair and maintenance. The leasing company, in most cases, will cover the equipment in the event that it breaks down, and the company will repair and maintain the equipment as necessary.
Most types of equipment leases can be counted as a type of business expense for tax purposes. At the end of the year, these amounts can be deducted to lower your business tax liability.