If you’re in the market for new equipment, don’t commit to buying yet; consider the advantages of leasing business equipment instead.
Business equipment is expensive, and making room for it in the budget isn’t always possible, but leasing can offer a more cost-effective purchasing option. Short-term leases also give you peace of mind knowing that you haven’t wasted money on equipment that may not be right for your business. And with rapidly emerging new technology, old equipment can become obsolete before its return on investment.
Buying equipment requires a large down payment, which may not be in your business’s best interest. Instead, leasing business equipment requires a deposit and monthly payments designed around your budgetary needs.
Purchasing equipment impacts your credit. With a lease, you don’t need to spend time finding a bank who will extend credit to you. This keeps your business credit line open, which in turn allows you to receive funding for expansion, staffing, or other needs. Having a monthly budget also allows you to prepare for unexpected expenses.
Stay Competitive & Avoid Obsolescence
Leasing equipment allows you to always have access to the latest technology and new products. You don’t want to be stuck with equipment you bought when a new and better solution appears on the market. A lease helps prevent you from using outdated equipment and easily upgrade new equipment.
Avoid Maintenance Costs
This can vary with different types of leases, but oftentimes the lease can include extra expenses like installation, delivery, and maintenance. Since leasing companies are usually responsible for maintaining equipment, it relieves the burden on you and your staff to keep up with repairs and upgrades.
Determine Your Business Needs
A short-term lease allows you to evaluate whether the equipment is right for your business before you commit to a purchase or long-term lease.
That’s right—leasing business equipment can qualify as a fully deductible expense according to Section 179. When you qualify your lease as an expense, the equipment is also not listed as an asset or liability. This simplifies your accounting and helps you avoid debts.
Fixed Monthly Payments
Lease payments aren’t affected by market conditions. They’re fixed for the term of the lease, which protects you from inflation and higher payments.
Contact Us About Leasing Business Equipment
Southwest Solutions Group® provides a variety of equipment leases to all types of businesses. For more information about the types of leasing options and equipment we offer, call us at 1-800-803-1083 or send us a message today.