Small business owners are often looking for opportunities to not only expand their companies, but also ways to save money while doing so. One of the most effective ways to improve business is to invest in new technology and equipment. Unfortunately, this can turn out to be an expensive endeavor. For entrepreneurs hoping to increase revenues and keep up with new technology and machinery, equipment leasing is a reliable option to keep expenses low while staying up to date with competitors’ business practices. Here are a few benefits of equipment leasing:
1. Reduce costs
It’s no secret that equipment can be expensive, and what’s more, once business owners have purchased new tech solutions, it can be frustrating to spend large sums of money on business tools that may soon be obsolete.
With equipment leasing, company leaders can save money and avoid paying significant up front costs, thereby reducing expenses. Furthermore, if a business owner is on the fence about investing in new technology, they can test out equipment without having to fully commit to a product. If, at the end of the lease term, they have decided they would rather go another route, business owners are free to do so and look around for other options.
2. Opportunity to upgrade
Another added benefit of equipment leasing is the option to upgrade to new or updated machinery, materials or accessories. It is a common grievance of companies of all sizes that, several months or a year after purchasing equipment, it seems to have been replaced by a better version, making their current materials seem antiquated by comparison.
However, when a company chooses to lease instead, they can contact their provider and upgrade to more advanced options. Going this route helps small business owners stay on top of costs while getting to know new technology, beating other organizations to the chase.
3. Potential tax benefits
Some of the more underrated advantages of equipment financing are the tax breaks small business owners can enjoy when they opt to lease rather than buy. Under Section 179 of federal tax laws, the IRS has granted equipment leasing a tax exempt status. The Section 179 Tax Provision for 2013 allows companies to deduct as much as $500,000 for qualified new and used business equipment.
4. Repairs may be covered
Even when organizations are careful with their equipment, accidents can happen. When investing fully in new business materials, if something goes awry with equipment, companies must pay for repairs or replacements entirely on their own. Equipment financing lenders can take the burden of some of these costs, helping companies remedy equipment problems sooner rather than later. This way, businesses don’t have to spend exorbitant amounts of money or time trying to get back on track with operations.
These are just a few of the valuable uses equipment leasing provides. If small business owners are interested in propelling their companies forward, saving money and staying ahead of competitors, they should contact National Funding about leasing options today.