Why equipment funding and/or leasing can be the best option
Equipment Loans vs Leasing
Every business owner faces the task of having the right equipment to help their business run more efficient. With that comes the realization of high equipment costs to purchase and maintain. This is the key reason why businesses choose equipment loans or even leasing. The biggest benefit of a business owner choosing equipment leasing over purchasing, is holding on to its cash and instead making monthly payments over a period of time.
Tax Deductions For Equipment Leasing
Sometimes the equipment that is leased,is qualified before section 179 where one might be able to write off the whole expense or a part of it.To be sure a business owner should check it out with his CPA. When a business purchases and equipment,they are stuck with it until they sell it,and often will lose money.With an equipment lease. Once the lease terminates the business owner has an option to purchase it, sometimes for like a dollar, or they can choose to lease a new more modern equipment keeping up with the newest technologies.
By businesses switching to equipment leasing vs purchasing they are able to take advantage of the newest equipment on the market today.
- This helps them maintain success in the long run.
- It helps them increase their productivity and helps them meet their goals and business objectives.
An Example Of A Business That Uses Equipment Leasing
Restaurant Owners make up a good size of this business because restaurant equipment is very expensive today and most businesses do not have the cash to purchase it outright. The typical items that are leased are
- Ice Machines
- Prep Stations
Business Owners turn to leasing for these items so that they can hold on to their cash for other business expenses like payroll, rent, and inventory. Restaurant equipment dealers offer leasing options to restaurant operators, this makes it a win-win for both. They discuss how long the company needs the equipment? The payments? Taxes, Insurance.
Restaurant owners should understand the terms of the agreement before signing.
- How Long Island The Leasing Process?
- Credit Approval for a leasing program is generally determined in a few hours
- Funding is available within 3-5 days.
Items Needs for an Equipment Lease or Loan
A invoice for the equipment is needed as well as a completed application and a few bank statements.Sometimes the last 2 years taxes are needed. We here at American Small Business Loans Inc,and our lending partners will get to know you and your business first! And then together we will discuss what options that would be best for your business.
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