Benefits of Leasing
We believe that leasing equipment is the best option for your business when it comes to acquiring equipment. It’s an effective way for you to manage the cost of replacing equipment while maintaining your cash flow. Choosing leasing over buying is a way of avoiding large up front cash outlays or burdening your current credit. An accountant can help you decide what is best for your business, but here are a few questions to consider:
How long will you need the equipment?
If you only need a piece of equipment for a limited time, or if it will get outdated or need to be replaced every couple of years then leasing may be a better option for you. Alternatively if you plan to keep the equipment for its entire lifespan, you might be better off purchasing it.
What are the tax benefits to leasing equipment?
In some cases, the lease is structures with business tax claims in mind, which work in your business’s favour, even if you plan to keep your equipment for its entire lifespan.
How will you be paying for the equipment?
Usually, you want to avoid paying for long-term assets/equipment with your company’s working capital. That money is needed to run your business, including carrying receivables and buying inventory. This could hinder your ability to pay recurring items like your lease, utilities, taxes or payroll if industry conditions get strained.
What’s the total cost to acquire equipment?
Before you decide which option is best for your business, compare the total cost of leasing to the total cost of financing the equipment with a loan. Remember you need to include all the interest, insurance, maintenance costs and tacts that you would pay if you owned the equipment.
Additional benefits of leasing equipment
Leasing can be the ideal way to finance expensive, income-generating equipment as well as other necessities like computers, office furniture and other business needs.
Other benefits include
For more information on leasing call us today at 403 710 5847