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Monday, November 19, 2012

Benefits of Equipment Leasing


Advantages of Leasing Equipment

The primary advantage of leasing business equipment is that it allows you to acquire assets with minimal initial expenditures. Because equipment leases rarely require a down payment, you can obtain the goods you need without significantly affecting your cash flow. 

Another financial benefit of leasing equipment is that your lease payments can usually be deducted as business expenses on your tax return, reducing the net cost of your lease. In addition, leases are usually easier to obtain and have more flexible terms than loans for buying equipment. This can be a significant advantage if you have bad credit or need to negotiate a longer payment plan to lower your costs.

Leasing also allows businesses to address the problem of obsolescence. If you use your lease to attain items that are subject to becoming technologically outdated in a short period of time, such as computers or other high-tech equipment, a lease passes the burden of obsolescence onto the lessor, as you are free to lease new, higher-end equipment after your lease expires.

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