As a small business owner, especially if you are in the startup stage, you probably carefully watch and weigh your financial expenditures. However, you probably need some form of equipment or machinery, even if you only need computers. Unfortunately, equipment tends to be quite expensive if you purchase it outright or get a loan for your purchase. Therefore, these are some benefits of equipment leasing.

Financial Benefits

When you lease equipment, you don’t have to come up with a down payment, and you don’t need to apply for a loan. In addition, even if your company is not yet established, there are leasing companies that will work with you, whereas financial institutions won’t typically lend to new businesses. Also, lease companies work with businesses and business owners who don’t have great credit. Some of these companies also work with businesses that have gone through a recent bankruptcy. You may have to explain your financial challenges and credit history, but you should find a company that will lease to you.

Your lease payment is also lower than your loan payment would be. Also, your payments are flexible. You can set weekly, monthly, quarterly, or yearly lease payments. This is especially beneficial for seasonal businesses. In addition, if you have just opened your doors, your lease payments can be set so that you can establish yourself and start earning regular income before your lease payment is due.

Access to the Equipment

When you lease equipment, you receive it quickly. Not only is the lease application process much quicker than the loan approval process, but the equipment is quickly transferred to you and installed in your facility. In addition, when your lease is over, you can upgrade to new equipment, so you consistently have the latest technology. Some lease companies also offer a buy-out option at the end of the lease period if you want to keep the equipment you have been using.

Customized Equipment

You should be able to find an equipment leasing company that specializes in your industry. These companies offer the specific equipment you need. Then, they have regular maintenance and repair specialists that work on your equipment. They also stay ahead of the industry, so they can inform you about new technological advances in your industry.

Tax Benefits

Unlike purchased equipment, which is typically depreciated over a number of years, your lease payments are often deducted in full as operating expenses. This reduces your taxable income, and thus, your taxes.

Leasing your equipment has many benefits. Consider these as you research leasing companies.