richard@finance4business.biz
Telephone: 07872033804
Many business owners continue to finance their equipment the “old fashioned way” through higher purchase. In many cases this is purely because they are not aware of the potential benefits of leasing their equipment.
These advantages can be seen in four distinct areas:
INITIAL COST - leasing offers 100% finance and therefore covers the total cost of the equipment therefore there are no deposits required. Most leases will only require the first and last monthly rental in advance of delivery.
EQUIPMENT OBSOLESCENCE - A lease can result in a tremendous reduction in the expenses involved in upgrading your equipment. Leasing can help avoid economic obsolescence which occurs when equipment cannot keep up to the demands of the market or technology. Leasing avoids this by allowing you to upgrade your equipment.
TAX BENEFIT - Most leases can be structured so that you can write off 100% of the annual lease payments. The monthly payments are the same as normal monthly expenses. Contrast that with an equipment loan for which you can only write off the interest.
OFF BALANCE SHEET FINANCING - Larger businesses often prefer not to own high value of equipment as that equipment would depreciate substantially and whoever owns that equipment is responsible for that write off. Leasing can mean that additional debt is not shown on the Balance Sheet hence a company may be more attractive to potential buyers.
These advantages can be seen in four distinct areas:
INITIAL COST -
EQUIPMENT OBSOLESCENCE -
TAX BENEFIT -
OFF BALANCE SHEET FINANCING -
Many business owners are realising that they do not necessarily need to own their equipment to run a successful business; they only need to have use of it for a specific period.
WHY YOU MIGHT LEASE RATHER THAN BUY
Finance 4 Business Limited co no 06278376
Director Richard Watts CCL number 605125
Director Richard Watts CCL number 605125
