Equipment leasing is a viable alternative to buying outright – especially for certain industries (medicine, construction) where the machinery can be quite expensive. Furthermore, the equipment can become deprecated within a couple of years, which often makes leasing the superior option since you can inexpensively replace it for more up-to-date inventory.
The ability to lease also frees up your finances and makes more working capital available for your other business ventures. Inevitably, you can acquire more equipment when you lease them than when you have to buy them in full. There are plenty of financing options available for either option.
Including the above generalities, another benefit of leasing your machinery and equipment is that the majority of lessors do not ask for a large down payment. By not cash-strapping your business, you can likely acquire all the equipment you need for your office. The payments are relatively easy to keep pace with, and won’t stifle your ability to become profitable.
And of course, you can update your equipment (via replacement) as time wears on and improvements hit the market. Since you’re leasing it, you cannot make changes to the equipment yourself, generally.
The federal government has programs that confer tax credits on equipment leases since these are considered to be a business expense.
Check the SBA website for more specific information – particularly the section on qualified financing and the deductions it oversees.
First of all, you need to take an accounting of your monthly budget before you decide on leasing machinery and equipment. Depending on how many pieces of equipment you need, the cost could end up being a large chunk of your monthly cash flow/debit. Having an idea of what you can afford is a much better strategy than looking for prices beforehand.
Contact Porter Capital Group to explore your SBA financing options.