Getting the necessary financing for your business can be challenging, but there are many ways to get what you need. Alternative lending sources generally provide more options than traditional lending institutions. If you lack the funds to provide equipment for your business, consider equipment leasing. You could find that this option is perfectly suited to your circumstances.
Upgrading Old Equipment
If you have been in business for some time and your current equipment is getting old and worn, equipment leasing may enable you to replace it. This could also be beneficial if you need to upgrade equipment. Many technology companies, as well as businesses in other industries, must upgrade their equipment continuously to remain competitive.
Opting to Buy
Keep in mind that once the term of your lease is complete, you may be given the option to buy the equipment you have been leasing. If it is in good shape and you won’t need to upgrade it anytime soon, this might work well for you. If not, then you are under no obligation to make a purchase.
In addition to providing you with the equipment you need to run your business, equipment leasing may also offer tax advantages. Since payments are made with pre-tax funds, and the leased equipment does not need to be carried on the books, you could benefit from such an arrangement at tax time. Be sure to discuss this matter with a reputable, knowledgeable CPA before employing equipment leasing as a tax strategy.
Equipment leasing serves an invaluable purpose for countless businesses. Instead of buying new equipment and taking the loss when it wears out or becomes obsolete, you may want to consider a lease. If you require new or upgraded equipment for your company, contact Vankeith Commercial Capital today.