Heavy equipment leasing there are two main types of leasing; Finance Lease and True Lease. Finance leases should be used when you intend to keep the equipment after the lease it up since they offer a purchase option. True leases generally do not last for the full life of the equipment. The rates are also lower since the lessors have the option to sell the equipment after the lease it up. Leasing heavy equipment can be a great alternative to purchasing. Leasing heavy equipment can free up working capital as well as provide many other benefits to the business owner.
Heavy equipment leasing is gaining more and more momentum as business owners are leaving behind misconceptions and beginning to understand the benefits.
The Benefits of Leasing
- Provides companies with a way to manage equipment they may not want
- Gives companies financial access to newer technologies when they need it
- Leasing can be classified as an operating expense and not as debt on financial statements, reducing the impact on debt-to-equity ratios and liabilities, which can enhance a company’s borrowing capability
- Cash can be reserved for other uses such as R&D and acquisitions
- Income taxes may be reduced
No matter how skeptical you may be about equipment leasing, when you consider the potential benefits it pays to explore this valuable financing option. Let us find the right lease program for you.