Six Benefits of an Equipment Leasing Loan

Published August 6, 2019 by WC Team

Computers, printers, furniture and specialized machinery are crucial items for most businesses. Whether you are just starting out and have nothing or your present stockpile needs a serious upgrade, enhancing or changing your equipment can amount to big money. That is where equipment leasing loans can make such a difference.

Preserve The Cash Flow

Even though you need to obtain equipment, that does not mean that you can put aside all of your other expenses. After all, you still need to meet payroll, keep your inventory stocked and cover emergencies, among many other priorities. Equipment leasing loans enable you to use the equipment itself as collateral without being forced to contribute capital that you need to utilize for other priorities.

Speed and Convenience

Anyone who has gone to a conventional lending source knows how protracted and involved the loan process can be. In many cases, months can go by before you get an answer, and sometimes the verdict is not in your favor. By contrast, equipment leasing loans can often be obtained much more easily and quickly. This is because they are considered to be of lower risk to the lender since the equipment can be repossessed should you default.

Retail Capital

When you get a loan that enables you to lease your equipment, you are not buying it outright and are spending less money as a result. This means that you have more funds to put toward growing your business in other directions.

Total Financing

When you get an equipment loan in order to lease your furniture or machinery instead of buying it outright, you will generally not be required to provide an additional down payment. Instead, 100 percent of your financing, including taxes, interest, training, delivery and sales charges, will happen through the lease.

Manage The Life Cycles Of Your Equipment

When you buy your furniture and computers, they immediately become yours, and repairing, replacing or upgrading them is entirely your responsibility. On the other hand, leasing gives you the ability to make needed modifications when your contract ends. In the case of high-tech items, this is a huge advantage.

Potential Tax Savings

Getting a loan that enables you to lease instead of buying your equipment can also come in handy when tax time rolls around. Section 179 of federal tax laws gives equipment leasing a tax exempt status for qualified new and used business equipment.

For many companies, it is impossible to carry out day-to-day operations without costly equipment. If you count yourself as one of these, consider obtaining an equipment leasing loan. The benefits and advantages are hard to deny.

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