Whenever you need equipment for your business but you do not have sufficient funds to buy them straight away, you can rely on- equipment financing or leasing. So, when you lease equipment, you take it for rent the same way you rent an apartment. You only have to make flat monthly payments till the duration of the lease agreement. With equipment financing, one can finance up to 100% of the new or used equipment by applying for equipment loan.
Top Benefits of Equipment Leasing and Financing
1. Conserve and Control the Cash Flow
It is not an ideal thing to use your working capital in order to purchase or update the equipment, especially when you are short of cash. Equipment leasing or financing helps you save your working capital for your daily needs because it doesn’t require a down payment. You can continue paying your regular expenses even after leasing or financing equipment.
2. Tax Treatment
Leasing or financing equipment provides your business with significant tax benefits. In fact, leasing offers businesses with a full deduction of lease payments against the present earnings. It also lets you preserve the working capital that you couldn’t have possible access to if you had to purchase your equipment right away. As a suggestion, it is always good to consult your tax advisor for determining the tax benefits for your business.
3. Wide-Ranging Equipment Options
You get the facility to shop across a wide range of equipment be it new or used. You can purchase any kind of equipment depending on your business type and requirement. Equipment leasing and financing can help you utilize the latest equipment with advanced technology.
4. Less Documentation
In Equipment financing, you do not have to worry about the documentation process and get stressed. As the lenders are least concerned about knowing your credit score and the financial history. Both the processes are easy and fast, so you do not have to invest much of your valuable time while leasing or financing equipment.
It depends on the type of equipment that you decide to lease or buy. In case, your equipment is relatively small and you can take a loan, then you can go for financing else you always have the option of leasing the equipment.