The Many Benefits of Equipment Leasing

The prince of simplicity Paul Thoreau in Walden once wrote, "A man is rich in proportion to the number of things which he can afford to let alone." And so it is true with equipment leasing: The more equipment you can lease-ergo, not own and let alone-will keep your richer in the long run. Whether it's a backhoe, a semi-truck, a fax machine, a personal computer or super mainframe, leasing your business or work resources will benefit you in the short- and long-term.

One of the most important benefits in leasing equipment is cash-whether it's upfront cash, business cash or profits turned cash, leasing equipment helps put it back into your business. When you lease the equipment you use for your business, say the twenty office computers, the cash is not spent (and gone forever) on those computers, easily $25,000-$30,000 dollars. The money can be more wisely spent on advertising, investments, business trips, working capital, employee benefits or simple cash flow needs.

Additionally, you won't need the money upfront to lease the equipment you want and need. A small initial start up investment, say $3,000-$4,000 dollars, can get you started and your business jumping. The leftover money could undoubtedly help your business grow and move forward. Plus, the monthly costs for leasing the equipment is generally lower than bank loan payments. All around, you save more greenbacks.

Leasing your equipment will benefit you further since you'll have the personal freedom to be flexible. As your business and clientele needs change, your equipment will need to be upgraded to offer the best you've got. When you lease equipment, you'll have the opportunity to add equipment to your line up or actually replace the older equipment with the more efficient merchandise. The equipage you have to offer your customers, and the tools your employees (or you) use to do your best, will be of the newest and finest sort. What you produce, therefore, is of the highest standard and ensures repeat business and positive word-of-mouth publicity.

When you actually own the equipment you use in your daily workings, you will eventually be paying for upkeep, maintenance and, essentially, the ownership. Another benefit of leasing equipment, then, whether it's the delivery truck or the office furniture, is the money saved by paying only for usage and not ownership. When you rent equipment, as a general rule, you'll only pay for the months you use the merchandise (and perhaps the first and last month's lease cost). You no longer have to wait in the ever increasing long-line for financing at the bank. Leasing can be ready in less than a day, from approval to delivery of the newest business utensils. The payment plans are often more varied, longer termed and customized to fit your desire.

Whether you're leasing construction, medical, commercial vehicles, restaurant or printing equipment, the money spent is more often than not a tax deduction. The expenses of using the equipment can be deducted as an operational charge. A bank loan payment cannot be used for tax purposes as easily as the money spent for leasing the same equipment. Under the 179 US tax code, it is plausible to get an immediate 100% tax deduction from your taxable income with leased materials.

Leasing equipment gives small and big business alike the chance to get ahead and succeed in a business or personal world filled with challenges. Leasing equipment actually puts your business one step ahead of competitors, giving you the edge to doubly grow and prosper for a long time.

By Guy Phillips