You’re an established business with a reputation for making smart financial decisions. While you may traditionally have chosen to purchase your company’s equipment, have you ever considered equipment leasing? Here’s what to expect and how it could actually help your business’s bottom line.
Equipment Leasing: What is it?
Equipment leasing is an extremely popular financing option among small businesses today. Once your lease term is complete, you simply return the equipment or upgrade with a new lease agreement. This allows you to avoid having to resell aging equipment or push the lifespan of an asset when you’d rather use a newer model. If you prefer, equipment leases typically allow a buy-out at the end of the term, or even sooner.
You still get to stay in control of your options, with leases available for both new and used equipment. Don’t assume that equipment leasing is solely reserved for businesses in the construction or agricultural industries. You can even use this financing tool for medical equipment, technology, and office equipment.
One of the benefits of equipment leasing is the expedited application process. At CMS Funding, clients take advantage of a one-page application and credit approval within 24 hours. If you’re interested in a quick and easy solution to meet your equipment needs, a lease could be an ideal fit for you. Another plus is that no other collateral is usually required (other than the equipment itself, which is the collateral), so you can keep your capital free for other projects or investments.
When you choose equipment leasing for your business, there’s the potential for substantial tax benefits. Section 179 of the tax code allows businesses to apply for a full or partial deduction for the costs associated with the lease. With a deduction limit of $1,000,000 for leased equipment, this can be very helpful when tax season rolls around. It’s definitely worth consulting with your tax adviser to determine what kind of positive impact you can expect from equipment leasing.
Equipment leasing can help speed up the process for getting the tools you need to run your business more efficiently or even growing it to the next level. With benefits at every stage, picking a lease could certainly be the right move for your company.