6 Benefits of Equipment Leasing for Used Equipment
Is equipment leasing right for your business? If you only use machinery for a short period of time or need to upgrade equipment often but don’t have the money to keep up, then leasing might be perfect for you. Below are some of the best benefits when it comes to leasing equipment.
1. Pay Less Up-Front
When you lease something, you don’t pay the whole amount for the item. So, if you only need to use the item for a short amount of time, it’s best to lease. This can save you money right off the bat.
2. Get Tax Deductions
Most business owners know that they can deduct business-related purchases on their taxes. However, many business owners may not know that they can still write off things that they lease. You can write off the initial down payment as well as the monthly payments.
3. Upgrade for Less Money
If you work with equipment that needs to be upgraded often to stay up to date, like electronics, then it could be in your best interest to lease equipment. This is because you can choose how long you lease equipment for. If you know that a piece of machinery will be obsolete in a few months or years, only set the lease amount for that time. When the lease is over, you can begin leasing upgraded equipment.
4. Avoid Needing to Sell Old Machinery
Another bonus of being able to upgrade equipment when a lease is up also means that you don’t need to bother selling old equipment. This can help save time and money later on.
5. Use Machinery for Short Periods of Time
Tying in with the rest of the benefits (minus the tax deduction) listed above, when you choose to lease a piece of equipment, you can usually choose how long you want to lease it for. This can help to save money if you are only planning to use a piece of equipment for a short amount of time– no matter the reason.
6. Avoid Maintenance Costs
When you are leasing something, you effectively do not own it. That means if something goes wrong with it, you can send it back to where you leased it from to get it repaired. This can help to reduce maintenance costs on your end (that you would have to pay if you owned a piece of machinery).
No matter your reason for wanting to lease equipment, you can see that there are a lot of benefits to it. So, what are you waiting for?