4 BENEFITS OF EQUIPMENT LEASING
So, you have decided to start a business. Congratulations! Wherever you are in your business journey, there will always be new equipment that can help you to build your business so that it will truly flourish. But do you know to buy that equipment, isn't your only option? Here are 4 key benefits of leasing equipment for your business.
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1. Control and Conserve Cash. Equipment leasing saves your working capital (bank lines) for daily business expenses, business expansions,
or unexpected business related expenses. In addition to saving your working capital, with a lease you have a pre-determined monthly line item,
which can help you budget more effectively. With predictable monthly expenses, you can develop long-term plans for your business with confidence
and get your business set up with the equipment you need while keeping your cash flow available for other expenditures.
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2. Upgrade out-of-date Equipment. Depending on your business type, equipment leasing can help you to stay on top of the latest advances in
technology and equipment. How long do you plan to keep the asset? If you are only planning to keep it for the short term, you may find that
leasing is a better alternative rather than buying it and trying to resell it when you no longer need it. You can also determine the length
of your lease, so if you work with technology that changes rapidly, you can take on a short lease to make sure you are always at the cutting
edge in your industry.
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3. Tax Benefits. Lease financing presents your business with potential tax benefits. In many cases, leasing not only provides businesses
with a full deduction of lease payments against current earnings but also preserves working capital that you wouldn't have access to if you
had to purchase your equipment upfront. It is always a good idea to check with your tax advisor to determine the benefits for your business.
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4. More Appealing Balance Sheet. Monthly lease payments are viewed as a business expense instead of long-term debt. Having little debt on
your balance sheet helps you secure financing to fund your business. And who doesn't love a "pleasing to the eye" balance sheet?
Ultimately, a few simple rules of thumb may help you decide whether to lease or buy. If your equipment requirements are relatively small and you have the money or if you can get a low-interest loan then just buy it. You will save money in the long run. However, if you require a considerable amount of equipment, such as computers for your new company's 10 employees, leasing may be a better option. After all, why tie up a huge amount of cash especially when you could use that money to establish or grow your business?
Here to Help
No matter what stage of business, or what problem you face, Achievement Solutions offers a range of leasing products and services to suit any business. If you would want to use a product for a short term or have financial difficulties to own the products you require, leasing is always a better alternative solution you would want to go for. You could hit us up either by our hotline: 6295 5962 or email us today at info@achievement.com.sg if you are interested or have any inquiries about it.
