Why Lease
Business Equipment?
One of the biggest reasons to
lease business equipment is that it offers fairly minimal upfront costs. Unlike
bank loans that may require a substantial down payment, two advance payments are
generally all that are required at the beginning of a lease. This lets you keep
your capital in the bank while making important investments in your business.
In addition, some companies
lease business equipment as a way to protect against obsolescence. When setting
up the lease, take some time to evaluate the useful life of the equipment.
Choose a term length that will let you upgrade to newer equipment before the old
pieces are out-of-date.
Finally, leasing can lessen
the burden that taxes have on your company's wallet. Depending on how your lease
is structured, you may be able to fully deduct lease payments as a business
expense, as opposed to depreciating the value of the equipment as if it were a
capital expenditure. Talk to a tax professional to understand the impact this
can have on your business.
