Five Key Advantages of Financing/Leasing Equipment for your Business

Is financing/leasing better than paying cash for business equipment? There is no right or wrong answer to this question, as every business owner has their own way of doing things. That said, it is important to know some of the advantages of equipment financing/leasing. That way you can make the right decision for your company and budget. Envision Capital Group developed these five key advantages to help guide you in the right direction.

1) Reduced cash outlay.
Financing/leasing preserves your working capital that would otherwise be used if you were to pay cash for your equipment. You will only be responsible for low monthly payments over an agreed-upon term length.

2) Improve your business credit score.
Establishing and maintaining credit is a critical element for any business. Business credit takes time to build, yet it may open doors to greater amounts of financial freedom. Building business credit can also help you separate your personal finances from your business’s finances. As with personal credit, strong business credit can lead to lower insurance premiums or interest rates. Hence, a favorable way to build business credit is by financing/leasing the equipment you need.

3) Potential tax deductions.
Tax deductions are one of the biggest advantages of equipment financing/leasing. If the equipment you lease qualifies for the Section 179 tax deduction, you might be able to expense all or portions of the cost. Check with your accountant to find out if the equipment you want to get is eligible under Section 179. Learn more about Section 179 here: https://www.envisioncapitalgroup.com/section-179/.

4) Keeps equipment current.
Financing/leasing can help you stay on top of the latest advances in equipment, technology, and machinery. Being able to make upgrades to newer equipment when your lease is up can give your company a competitive edge. When you buy equipment, you are stuck with it unless you can sell it. So, if your business uses equipment that is periodically updated with better features and capabilities, a lease might be the best option.

5) Better balance sheets.
Helping you keep an attractive balance sheet is another advantage of equipment financing/leasing. That’s because your monthly payment is viewed as a business expense instead of a liability or long-term debt. As you know, having little or no debt on your company’s financial statements is a huge benefit that can improve your Paydex score. Learn more about Paydex here: https://www.dnb.com/resources/what-is-paydex-score.html

Have questions?
You will have the equipment financing/leasing you need at rates and terms that are right for your business. Envision Capital Group’s funding process is quick and hassle-free. Our commitment to fast, dependable funding and great service has helped us achieve full A+ accreditation with the Better Business Bureau (BBB). If you would like to speak with our finance manager, Dan Lund – he can be reached at 949.225.1718 or dankl@envisioncapitalgroup.com.