Equipment Leasing in 2021
Equipment leasing is obtaining the use of machinery, vehicles, software, or other equipment on a rental/lease basis. This avoids the need to invest capital in equipment. Ownership rests in the hands of the financial institution or leasing company, while the business has the actual use of the equipment. At the end of the lease you have options to purchase the equipment or extend your lease.
Research shows that 8 out of 10 U.S. companies lease some or all of their equipment. And, 9 out of 10 say that they will use equipment leases again.
Of all the ways to acquire equipment, leasing is the method most frequently used for all equipment types. On a cost-of- capital basis, equipment leasing may be the least expensive option.
Advantages of Equipment Leasing
- Lower Costs – By leasing, you get the equipment you need without paying the full cost upfront. Payments are regular and fixed, which makes budgeting easy.
- More Credit – It’s usually easier to get a lease than a bank loan for new equipment. And, because leases aren’t bank loans, your lines of credit are freed up for other needs.
- Tax Savings – Lease payments can also be deducted as business expenses (without the messy depreciation calculations).
- Timely Upgrades – Regardless of industry…all equipment ages. When you buy, you’re stuck with outdated technology after a year or two.
Whether you have healthy cash reserves or not, when the time comes to acquire new (or pre- owned) equipment, leasing makes the most sense. Envision Capital Group can help you get the equipment your business needs fast, easy, and economically.
