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becoming technologically outdated in a short period of time, such as computers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.
