Small business owners often are faced with a choice regarding the growth of their company. Having the most up-to-date equipment can make a big difference in terms of profit for a growing small business. Unfortunately, purchasing equipment, whether it’s new technology, restaurant devices or machines for fitness center, can be costly. That’s where leasing and equipment comes in.
Instead of putting all the money up front in a purchase, small business owners can lease the equipment they need. Here are some of the top reasons to lease equipment instead of purchasing:
Loans for equipment are typically more flexible than lending standards at a bank, which means small businesses can get a lease that fits their budget and leaves more money free for other operations of the business. Compared to purchasing equipment, leasing can leave more liquid capital for a business to expand elsewhere, rather than having all their money tied up in an expensive piece of equipment. There are different types of equipment leases that can take into account a business’s cash flow, seasonal fluctuations and budget.
When small business owners purchase equipment, they can usually deduct a portion from their annual taxes. Similarly, there are tax advantages of leasing equipment, and owners can deduct up to 100 percent of the cost as a business expense. This is a great benefit for businesses that are dependent on new equipment or if they need to upgrade to the latest model.
100 percent financing
When businesses purchase equipment using a bank loan, they won’t always receive 100 percent of the financing. With equipment leasing from National Funding, there is no down payment necessary. Furthermore, businesses have the option to defer payment for up to 90 days, giving companies more options for the funding sources.
To find out more about equipment leases and loans for your small business, contact National Funding today.