Small business equipment financing lets you stay up to date and save on new equipment purchases.
Small business equipment financing is an option that every entrepreneur and business owner should consider if the need arises to purchase new equipment. There are many positive factors that make small business equipment financing an attractive option for your business. One important aspect is purchasing power and flexibility as your business can obtain the best equipment available because the payments are more affordable, and this form of business capital is easier to come by.
Since the useful life of the equipment is matched up with the lease term there is no need for a down payment. This means that you get 100 percent financing for your purchase. No down payment will free up capital which can be used for additional working capital, which every new or growing business can always benefit from. The 100 percent financing option also encompasses service additions like installation, maintenance, and other services needed for your equipment to function properly.
Being able to use the equipment as much as you need without encountering the risks of ownership is an added benefit to leasing. Your business won’t have to deal with depreciation of the item nor will your business have to worry about the item becoming obsolete.
Arguably the most attractive benefit of small business equipment financing is the tax benefit. With leasing you have the option of deducting 100 percent of your lease payment as a business expense. If you compare this to obtaining a traditional loan where you can only write off the interest, you can see the savings potential. Often times the piece of equipment being leased will be cheaper after taxes than simply buying the item outright with a traditional financing option.
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