Here are some reasons why equipment leasing may be the better choice when it comes to acquiring new equipment.
With equipment leasing, there is a low fixed rate. Some loans do not offer a fixed rate, and loan rates are typically much higher than leasing rates.
Leasing is usually completed within 2 business days. A loan can take several days or possibly even weeks.
Low Down Payment
Typically, equipment leasing requires only that you pay 1-2 payments upfront. Those payments are then applied to your balance. With a loan, banks generally require 10-20% of the total price of equipment.
Operating lease payments can be 100% tax deductible if they are declared as an operating expense. With loans, depreciation can only be taken over the length of the equipment's useful life.
A Hedge Against Equipment Obsolescence
If you fear your equipment may become obsolete, a lease does not require that you purchase the equipment.
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