So, you may be wondering if leasing equipment is better than purchasing business equipment outright? At First Financial, there isn’t a right or a wrong answer to this particular question, because each business has their own way of doing things. If you happen to own a small to medium sized business and want new equipment, it is vital to know some of the advantages to leasing equipment. This way you are able to make the best choice for your business.
Saving you money, in addition to customer service, is what you appreciate most as a business owner. Financing equipment will save you working capital that will be used if you were to pay cash for your equipment. Using an equipment lease program that is designed around your budget and needs, will allow you to make monthly payments over time. This saves your money for business expenses, expansions and more.
Section 179 Tax Benefits
You will get great tax benefits with equipment lease financing. The IRS will let your lease payments to be deductible if your business uses leased equipment. We have a Section 179 tax calculator that will estimate how much you can save instantly when you want to finance equipment.
Avoid Outdated Equipment
Depending on the business you have, leasing equipment may keep you on top of advances in technology and equipment. When you are able to make upgrades to newer equipment, you will have a competitive edge. When you purchase equipment, you are stuck with it until you sell it. So your business uses equipment that is consistently updated with better capabilities and technology, leasing could be your best option.
Preserving Business Credit
You are aware that it is important to keep your credit line healthy and open. Being funded for business expansions, staffing, as well as other types of expenses will require solid credit, and having that open credit line will keep you able to respond in a time of need. Leasing equipment will allow your business credit line to keep open and strengthen your business’ cash flow.
Better Balance Sheets
Having a great balance sheet can be done with leasing equipment. That is due to the fact that your monthly lease payment is seen as business expense and not long-term or liability debt. Believe it or not, having little to absolutely no debt on your financial statements is a big benefit when it comes to get getting business funding.
Now that you know the advantages of leasing equipment, get started with First Financial. Submit your lease application through our secure online portal today. Still have questions? Talk to one of our staff about leasing options by clicking here.