Leasing Advantages 

Do you know how to make the most out of your equipment purchases?  Leasing offers advantages that other forms of financing can't.  Today, eight out of ten companies, small and large, lease their assets recognizing that the value of their equipment comes from using it, not owning it. There is an array of advantages that leasing can offer your business. Learn how you can benefit on your next equipment purchase.

 

Stay on top and respond quickly to your changing business needs.

  • Leasing allows you to get the right equipment your business needs.  
  • Leasing provides flexible options and may allow you to incorporate add-ons and upgrades as they become available.  
  • At the end of the lease term, depending on the type of lease you choose, you may buy the equipment, trade it up for the latest technology, or simply return it.
  • Ultimately, leasing provides protection against obsolescence.

There are several ways leasing provides financial benefits.  

  • First and foremost leasing pays for itself.  It puts profit making equipment in your hands quickly.  Use of the equipment adds value immediately to your company and ultimately your bottom line.  
  • Leasing also assists with budgeting.  It allows you to allocate your funds over time, with fixed monthly payments and a fixed rate, for the length of the lease term.  
  • Lease terms can be very flexible to match your cash flow. This makes it easier to budget needed equipment purchases even when you didn't plan for it.  

How are you using your cash?  

  • Conserve your working capital by using your cash to invest in your business.  
  • Lease your equipment rather than using your cash to make purchases outright.  This can help you generate even more profits.  
  • Another added benefit to leasing is the ability to preserve your existing lines of credit for other operational needs.  

Take advantage of the tax benefits available when leasing your business equipment.  

  • Tax benefits can reduce the cost to obtain equipment.
  • Depending on the lease you choose, as an operating expense lease payments may be fully tax deductable.
  • Take advantage of Section 179. Beginning in 2015, businesses that spend less than $2 million a year on qualified equipment can write off up to $500,000 in any year. This is a permanent limit.

**It is recommended to consult your tax advisor regarding your specific tax situation and to obtain the most current up-to-date details.


A leasing rule of thumb; BUY what appreciates, LEASE what depreciates!  When considering a leasing option on your next equipment purchase think of your business model and how leasing can benefit you.  Also, consider the fact that deciding to lease with Bankers Leasing Company will create an additional credit source for your business needs today and tomorrow.