Potential Benefits of Leasing
The primary benefit of leasing and equipment finance is that it allows you to acquire assets with minimal initial capital expenditures. Equipment leases rarely require a down payment, so you can obtain the goods you need without significantly affecting your working capital or cash on hand.
Leasing may also provide the additional financial benefit of tax deductibility. Often, your lease payments can be deducted as business expenses on your tax return, reducing the net cost of your lease. Leases are also easier to obtain and have more flexibility than the typical equipment term loan you would get from your local bank.
In addition, leasing equipment also allows your business to address the problem of obsolescence. If you lease equipment that will quickly become technologically obsolete, such as computers or other high-tech equipment, leasing passes the burden of obsolescence onto the lessor, as you are free to lease new, higher-end equipment after your lease expires.