An Equipment Leasing Guide for Business Owners
If you are in the market for new equipment for your business and don’t have the funds to purchase anything outright, equipment leasing might be a wise option. Equipment leasing allows you to lease any equipment that you need instead of purchasing it. In most cases, you can make small monthly payments over a period of years. Once your lease is up, you have the option of either returning the equipment or purchasing it for a smaller price that factors in depreciation and how much you’ve paid during the leasing period.
Benefits of Equipment Leasing
Equipment leasing has plenty of benefits for business owners, especially for those who are on a modest budget. First of all, most lessors don’t require a significant down payment for equipment, which is definitely welcome for someone who needs supplies to get their business up and running. Since you will typically return the equipment at the end of the lease, you also won’t have to worry about getting stuck with obsolete equipment that you need to replace.
Finally, many equipment leases are eligible for tax credits. Depending on the terms of your lease and the equipment you were leasing, you might be able to deduct your payments under Section 179 Qualified Financing.
If you’re considering leasing equipment for your business, you first need to determine if it will fit into your monthly budget. Leasing will certainly be less expensive than purchasing new equipment outright, but you still need to be able to make your monthly payments. Take a look at your budget to see what you can afford to spend every month.
You will also need to determine how long your equipment will be used. It is quite possible that you won’t need to use a certain piece of equipment for long, and you don’t want to be locked into a lease for longer than you need to. You should also make sure that any equipment you lease won’t become obsolete before you have to return it.
Once you’ve determined that equipment leasing is the best course of action for your business, contact a lessor who will provide you with a beneficial deal. If you need additional advice on finding a good equipment leasing deal, contact the Smart Capital Lending Group today.