Successful business owners look for ways to increase their revenues while decreasing their costs. One way you can do that is by leasing your equipment. Whether you have a new or established business, these are some advantages of equipment leasing.

Increased Agility

Your company can become more agile and flexible through this leasing process. You can gain the extra equipment you need quickly, and you can eliminate it quickly when you don’t need it. This is especially beneficial for seasonal businesses or those experiencing rapid growth. However, no matter what business you are in, your needs will ultimately continually change. The ability to address your machinery needs is vital.

Protect Your Cash Flow

When you purchase equipment, you typically need a large down payment, and you have regular monthly payments until the machinery is paid off. However, when you lease, your initial investment is minimal. You will need little to no down payment, and your payments are spread throughout the length of your lease. You can even schedule them during your busy season, so you don’t run low on your cash flow during slower periods.

Also, your shipping and installation are typically part of your lease, so you don’t have these upfront costs either. In addition, your maintenance and repairs may be covered.

Tax Benefits

When you lease equipment, your payments become operating costs, which are fully tax-deductible. However, when you purchase machinery, you typically must depreciate it over time on your taxes. Therefore, leasing equipment can give you a significantly larger tax deduction, saving you money every year.

Always Updated Equipment

You may choose to lease older equipment to save on costs, but every time your lease is up, you can upgrade your machinery. Therefore, you are always at the cutting edge in your industry. You can gain a competitive advantage by using the latest technology, especially if your competition has outdated machinery.

Quick Approval

When you finance new equipment, it can take a month or more to gain approval, not to mention the time it takes to order the machinery and get it installed. The lease approval process only takes a day or so. This means that you can have your equipment installed and running quickly. In addition, those with lower credit scores or new businesses can gain approval from some leasing companies.

If your company is new, has tight cash flows, hasn’t established strong credit, or just needs some flexibility, consider the advantages of equipment leasing.