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Equipment leasing
What is equipment leasing? Equipment leasing is an option for businesses to help them save money. With equipment leasing, a business would lease any equipment they needed to run their business instead of buying the equipment for their business. There are many different equipment leasing services out there available to help just about any type of business. A business can lease computer equipment, production equipment, security equipment, restaurant equipment, printing equipment, agriculture equipment, manufacturing equipment, constrictions equipment, and even dry cleaning or wood working equipment. Why business equipment leasing is a good choice There are many different reasons why a business should lease their business equipment instead of purchasing their own. For example, when a business leases their business equipment they are able to deduct the entire about that they pay each month on their lease on their taxes. This is a great option because businesses who buy their own equipment and take out a loan to do so, can only deduct the interest that they pay on the loan payments. Because of this, many businesses realize that after the deductions on their taxes they save a lot of money by leasing their business equipment. Another reason why business equipment leasing is a good idea for businesses is because there is less of a chance for the business equipment being out of date. It is much easier, and less expensive, for the business to lease new and nicer business equipment than it is for them to purchase the same newer equipment. Leasing business equipment also usually allows businesses to use financing to pay for the leased equipment since no down payment is usually required. This means that fees such as installation, taxes, delivery, and even maintenance could all be covered by the financing. That way the business does not have to use any of their current cash flow that they need for their many other expenses. Businesses could also find leasing business equipment enticing because it is much easier for a business to get financing for equipment leasing compared to them getting other types of loans and financing. The forms that a business has to fill out in order to get financing for leasing business equipment are similar to credit card applications. Whereas, other types of loans likely require a business to provide the lending institution with tax returns, a business plan, and other types of financial statements. More about the leases There are many different types of equipment leasing options available to businesses. For example, there are Master leases, Step Up, Municipal, and Skip leases. There are also True (or Operating) leases, Finance (Capital) leases, Sale leaseback, and 60 or 90 Day deferred leases. Different equipment leasing companies may use different types of equipment leasing options. And within the same equipment leasing company they may use different types of leases depending on the type of equipment being leased. When the lease is up on the equipment, there are different options available to the business that has leased the equipment. Usually the equipment leasing company and the business interested in leasing the equipment will figure out what is to be done once the lease is up. Most of the time there are several options that a business may be offered to purchase the leased equipment from the equipment leasing company after the lease is finished.
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