If you need new equipment but don’t have the funds to purchase it outright, you might want to consider equipment leasing as an option. After all, purchasing equipment is expensive and it can be next to impossible for the average small business owner to get everything they need at once. This is where equipment leasing comes in.
What is Equipment Leasing?
This is a form of financing which allows small business owners to obtain the equipment they need without having to invest a lot of money upfront. The lease is set for a specific period of time. Once the lease expires, there are usually three options:
Return the equipment
Renew the lease
Purchase the equipment at fair market value
Leasing is different than financing. If you take out a loan on a piece of equipment, you own the equipment when the loan is paid off. Let’s take a closer look at some of the advantages of equipment leasing for your business
Equipment Leasing Benefits
When it comes to getting equipment for your business, leasing is an option that has several benefits.
Typically, no significant down payment is required
Equipment can be updated/upgraded as needed
Often are tax-deductible
Saves money in the long run
Keep in mind though, not all equipment leases are the same. Additionally, there are plenty of ways that you can finance a lease. You may want to check into alternative financing to pay for the lease.
If you are still not sure whether equipment leasing is a good option for your business, you might want to talk to the professionals at Sterling Capital Consulting. We can help you figure out what your best options are when it comes to obtaining equipment for your business. After all, most small business owners don’t have the financing to buy all of their equipment upfronts.