9 BENEFITS OF LEASING EQUIPMENT AT WB FLOOR MACHINES
- Spread the cost
- Tax benefits
- Depreciation of capital assets
- Just what you need
- No large deposit
- Ease of cashflow
- No interference
Can acquire the new equipment needed now with minimal delay and decisions usually within half a working day
Leasing is less capital intensive than purchasing, so if a business has constraints on its capital, it can grow more rapidly by leasing property than it could by purchasing the property outright.
Leasing may provide more flexibility to a business which expects to grow or move in the relatively short term, because a lessee is not usually obliged to renew a lease at the end of its term.
Tax benefits can be available and advice should be sought from an Accountant.
Depreciation of capital assets has different tax and financial reporting treatment from ordinary business expenses. Lease payments are considered expenses, which can be set off against revenue when calculating taxable profit at the end of the relevant tax accounting period.
Can acquire the correct equipment needed and not just what they can afford from cash reserves.
Can acquire the equipment with just a small outlay and not a large deposit as it is sometimes required with other means of funding.
Will pay the balance over a set period of time and at a fixed monthly payment, thus will obtain ease of cash flow and certainty.
Will not interfere with any bank borrowing facility that is there to assist with day to day running of business and working capital in quiet periods. You are offering an additional line of credit.