Leasing Payments are Tax Deductible
One more important advantage of leasing business equipment is that the amount of money you pay for leasing is tax deductible. This further reduces the cost of acquiring business equipment. Moreover, comparing business equipment leasing with equipment financing, the process for obtaining a lease is easier and the terms of a lease are more flexible than those of loans. For people with bad credit, this option is very useful. Moreover, the longer repayment period further reduces your cost of acquiring equipment.
No Obsolescence Worries
Next advantage of leasing business equipment is avoiding obsolescence. This is more relevant in case of the business equipment that has a shorter life span and quickly becomes outdated. By leasing computers and other similar hi-tech products, you do not have to worry about your equipment becoming obsolete.
Unaffected Cash Flow
Unaffected cash flow is one more advantage of leasing business equipment. Leasing allows you to structure the lease payments according to the demands of cash flow. Businesses that are cyclical or seasonal can design repayment plan when they have enough cash in their hands. In addition, the process of leasing business equipment is much faster because in most cases the process is completed in less than three business hours. You just need to fill only a single-page application and you get the access to up to $100,000.
Preserving Money for Other Opportunities
When you choose the option of leasing rather than buying business equipment, you preserve your money for several different opportunities such as marketing, inventory, or personnel. On the other hand, you use up your capital and other lines of credit when you make outright purchases. You can ask the supplier of the business equipment to deliver it immediately once you sign the necessary documents. If you select the term of the lease that is matching it with the duration of the business project you are handling, you need not keep it after the completion of the project.