The Lowdown On Equipment Leasing
At LeaseQ, we are in the business of equipment leasing, and of course we want you as a customer. To be fair however, we also fully realize that there are instances where leasing might not be the best course. With that in mind, we are going to look at some of the pros and cons of business equipment leasing. This information is designed to help you make the most informed decision possible, one that benefits your company’s unique needs.
Why should I lease my business equipment? Leasing allows you to obtain the equipment you need without having to pay any full cost upfront. You have fewer initial costs related to the equipment, and can get the products you need without over investing. Leasing can cost more money in the long run, however, with deposits and monthly payments adding to the overall price in various ways.
What about tax benefits for leasing business equipment? The full cost of the lease is generally deductable from taxable income, and leases lasting five years (and sometimes seven) allow for the cost of your assets to be claimed as capital allowances. By the same token, capital allowances cannot be claimed on leases running less than five years.
Every company has its own unique needs, and leasing may or may not fit into the plan.
Are finances easy to manage through a business equipment lease? Monthly payments do allow you to budget funds and limit unexpected costs, while some lease agreements may be quite complex, in some cases more difficult to manage than an outright sale.
Are there perks with leasing that aren’t available when purchasing? Leasing companies often will be responsible for the maintenance of their equipment, and knowing these problems are taken care of can be good for your business. On the other hand, leasing agreements are often quite set and firm, and you will be a part of it for several years until the term is up.
What kind of equipment will I have access to? Many times, leasing allows business to obtain higher quality equipment than if they purchased it outright. Smaller monthly payments mean that you can have access to a product that you may otherwise be unable to afford. Leasing also makes it easy to upgrade, especially in those cases where technology is rapidly changing, such as computers. The other side is that you do have to work within the guidelines set forth by the leasing company.
LeaseQ is one of the leading providers of business equipment leasing and financing in the United States, with options available for businesses of all sizes.