Benefits to Leasing
Lease Payments are 100% tax deductible which makes leasing a highly efficient
financial strategy for all types of business
No Capital Outlay
There is no capital outlay or deposit required– just the rentals paid in advance.
Budget Forecasts Leasing provides certainty and ease of budgeting as your payments are fixed over the life of the equipment.
Leasing can save you from sinking capital into a depreciating asset enabling you to invest in product development, marketing or other business opportunities.
Upgrading Existing Equipment
If the equipment is purchased, it may drop in value very quickly due to the ever changing world of technology. With leasing you can upgrade at any time allowing your business to keep up with the latest technology on the market.
Leasing gives you an additional line of credit and does not affect your existing credit lines. Also, unlike borrowing from the bank, leasing will not tie up any assets in the form of security or collateral, and is not affected by fluctuations in interest rates.
Leasing Allows you to spread the cost of the equipment over a designated period of time. Therefore purchase decisions which could be delayed if purchasing outright with lump sum cash payments can be brought forward.