Equipping a new business is not easy. It is an uphill battle. The challenge lies in getting the equipment that allows you to stay in stride with competitors while maintaining working capital. Perhaps the best way to accomplish this is via equipment financing. The Small Business Association (SBA) suggests that equipment leasing is a way to “make cost-effective purchasing decisions.” However, how can you decide whether leasing is good for your business?
Pros of Equipment Leasing
The chief reason to finance is the benefit of keeping cash on hand. Still, there are other reasons that small business owners should consider. Let’s take a look at a few.
- Time – Trying to find financing for your business keeps you away from running your business and getting other essential matters rolling. Filling out an array of applications can cause you to lose days or even weeks. Leasing is usually a much more flexible and less stressful option.
- Newer equipment – Leasing allows you to have regular access to the latest and greatest tools. This access alone adds a competitive advantage to your operations while not depleting your working capital.
- Avoiding maintenance – Most leasing agreements have maintenance statutes included that can spare you from costly repairs. Additionally, if your equipment does malfunction, the financing company will usually replace the machinery immediately.
- Tax savings – Sometimes the use of leased equipment gives your business annual tax deductions. Several items leased or rented are fully deductible under IRS codes.
Do you have questions or would like to inquire about getting equipment financing for your small business? Give our financial specialists at STRADA Capital a call. You can also fill out a quick application to get immediate answers about what we can do for you. We also provide construction equipment leasing and truck leasing.