The low cost of leasing compared to conventional financing is one of the most attractive benefits of leasing. Leasing equipment has specific advantages over the purchasing of equipment with cash. A clear understanding of these advantages can assist a business when they are considering the acquisition of new equipment, computers, automobiles and machinery for their operation.
Advantages include:
Capital Conservation: Leases in today's financial climate can often be obtained with little money down. As opposed to paying out of pocket for the expenses incurred during the purchase of equipment. These funds can be allocated elsewhere for business use such as, marketing and advertising, salaries and wages, etc.
Low Documentation: Leases typically require much less financial documentation and preparation than bank loans. Some financial institutions need to see two to three years worth of business operating history and credit. Whereas, a lease may require only six months or less of operating history.
Low Down Payment: Businesses are often able to obtain better or higher quality equipment with a lease than if they were to perform an outright purchase of equipment or machinery.
Fixed Rates: This will protect you from inflation as well as assist you in building future projections of resource allocation.
Cost of Repairs: The reality of equipment and machinery is that even new equipment can break down and lead to costly repairs. Most leased equipment is maintained and repaired at no cost to the business. Which can save a business considerably in the amount of necessary but costly repairs.
Tax Advantages: Operating leases are generally 100% tax deductible as a business expense as well as being factored in as pre-tax earnings rather than post tax profits.
Lighthouse Capital Funding can help you to get the equipment that your business needs whether you are a start up company or well established. New equipment can assist your business in efficiency and productivity. Therefore, allowing for higher profits. Fill out an application today for new equipment.