Small Business Financing – Equipment Leasing Basics
Executive Summary About Small Business Equipment Financing by Rob Renk
Have you ever thought about leasing your next equipment acquisition?
Equipment leasing can be an excellent tool for a small business to stretch their monthly budget. Leasing offers you 100% financing, even soft costs, such as: installation, training, and even an extended warranty. It improves your cash flow. With leasing there is no need for large cash outlays, as is required when purchasing. Plus there are many tax benefits to leasing equipment you use in your business everyday.
Almost anything that your business needs in its day to day operations can be obtained through leasing. You will have the option of deferring payments for different lengths of time. You can defer in the beginning for up to 90 days, or maybe your business is seasonal and when your equipment does not provide any income during a certain time of year, then you can exclude payments for that period of time until your equipment begins to create income again.
The laser treatments you provide using this piece of equipment can take some time after billing insurance to get paid. This delay in payment can be offset by using a 90 day deferred payment option. To begin the process of leasing you can find a reputable leasing company to handle the process and build a solid relationship with. Because once you see how easy and economical equipment leasing can be, you will be hooked. The ability to write off most of the cost of your leases will save you greatly on your annual income tax bill.
When acquiring assets the best rule to remember is to own assets that appreciate and to lease assets that depreciate. Also remember that you can buy your leased asset at the end of the lease for as little as $1.00. Couple that with your tax benefits and your very low initial out of pocket outlays and the total benefits will help pay for itself many times over.
