The question of how to pay for a new machine is a major consideration for your business. Should you pay cash? Get a bank loan? Or is leasing your best option?
You can save time and money by leasing your next machine. Here are some reasons to consider leasing:
Financing In most cases, when you lease you do not have to make a large cash down payment. Usually only the first and last months payments are required. You can finance the entire cost of the new equipment including taxes, shipping and equipment setup. With bank financing, you may have to pay for these fees separately.
Leasing Is Simpler Than Bank Financing The leasing process requires less paperwork and usually lower credit requirements than bank financing. Most leases are approved in 24 to 48 hours. Bank approval can take weeks.
Saves The Business Line Of Credit Your business line of credit can remain free for buying supplies, hiring more personnel, or for marketing your business.
Your Business Can Have Up-to-date Equipment Most leases can be designed so that you can get the latest equipment when you need it and not have to worry about what to do with the old equipment. Also, once approved for equipment leasing, you will not have to go through the application process each time you want to get new equipment.
Pay For The Equipment As You Use When you lease equipment, you are paying for it as you get to use it. You dont have a large cash outlay before you get to receive the benefits from the new equipment.
Tax Advantages Leasing payments are 100% tax deductible. If purchase the equipment, your tax benefits will usually not be as great because of depreciation rules.