You need new equipment. You have a tight budget. But you can’t work with outdated machines. What are you supposed to do? There comes a point for every business where you eventually have to think about leasing, financing, or taking out a business loan. It’s time to think about why you should consider equipment leasing.
Top Reasons to Go With Equipment Leasing
When you choose an equipment lease, you’re agreeing to rent equipment for a specific amount of time instead of buying it outright. You’ll make monthly payments for whatever number of months you’ve determined you’d like to keep the equipment. Here’s why it might be right for you.
Typically when you agree to a lease, you’re agreeing to a rate that’s going to stay fixed throughout the whole time of your lease. Other loans might have a floating rate that changes periodically throughout the term of the agreement, but having a fixed finance rate takes the guesswork out of the loan game.
You Don’t Want Your Equipment Forever
Especially if you’re planning on keeping your equipment for an extended period of time, equipment leasing is something to consider.
If you’re thinking you will keep your equipment longer than five years, you might want to think about purchasing. Any less than that, a lease could actually save you money from not having to buy outright. If you’re not sure it’s the equipment you want and you want to try it out, a lease is also a good option.
You Have Old Equipment
If you want to upgrade your old equipment but you don’t necessarily want to sell it or have the time to do so, a lease could be the solution for you. Many equipment leases offer credit on trade-ins. That way you kill two birds with one stone. You don’t have to look for both a buyer and a finance company anymore – you get two in one.
Leasing also allows you to stay completely up to date with technology, instead of buying and having old equipment forever because you need to make sure your investment paid off.
Tax Incentives Are Available
Section 179 of the IRS tax code spells out that leasing is sometimes completely tax deductible. If you don’t exceed the one million dollar cap, then 100% of your lease might be tax-free.
You Don’t Have the Available Capital
It might not be a convenient time for you and your business to buy equipment outright. If you have capital tied up in other places, you might not even be capable of financing the equipment all on your own in the first place. There could be more pressing areas of your business you need to spend that capital on, even though you still do need equipment.
When you choose equipment leasing, you’ll need financing to see it through. TopMark Financing offers you heavy equipment financing on the terms that you’re looking for. You can get financed up to 200 thousand dollars at low rates. Even if you have bad credit, there are structured programs to work personally with you.
There are no equipment restrictions, and the process can take only 24 hours. Fill out a contact form today.