Why leasing equipment might be the right choice for your business
For a business to thrive, it needs every advantage it can get, and that includes making the most cost-effective equipment financing decisions. At SFL Leasing Group, we offer leasing options that make a lot of sense for many businesses—particularly new businesses that might have tighter credit limits or less certain cash flows. Here are just a few of the advantages that leasing equipment has to offer your business.
• Simplify cash flow
When you lease your equipment, your creditor owns the machine and you pay for the use of it. You can also decide whether you’d like to lease the equipment with an option to buy it later, or simply lease it. If you were to buy the same piece of equipment outright, it would require a lot of money upfront. When leasing, however, you pay for the machine in more manageable increments that don’t disrupt your cash flow nearly as much.
• Upgrade your equipment easily
Purchasing heavy or expensive equipment is a huge investment. In order for it to be financially viable, you have to get enough use out of the machine to be worth the large amount of money you paid for it. If you lease rather than buy your equipment, on the other hand, you won’t have to recoup the huge cost in the use of a specific machine. That means you can update your machinery much more frequently to get the newest advantages of rapidly changing technologies.
• Potential tax benefits
Depending on your specific situation, there may be significant tax advantages to leasing rather than buying (increasing your assets). Be sure to consult an equipment financing expert before making any large purchases to find out what makes more sense for you.
• Be in less debt
With huge purchases, some businesses borrow heavily to get the resources they need to run their business. Having huge debts for purchasing assets on your company’s books can become a problem when it comes to financing other parts of the company’s operation costs.
• Simple approval process
Getting approved for leasing equipment is a much easier process than getting a loan to purchase new equipment. That means you can get the tools you need to get the job done fast and with a minimum of hassle.
If your business wants to stay agile and potentially save a lot of money, be sure to look further into the advantages of leasing transport or agricultural equipment over buying it. Contact us today at SFL Leasing Group to find out more about how our brokers can help your business.