Why would a business want to rent or lease their equipment? There are many reasons, including lack of start-up capital, working toward establishing credit, or an unexpected issue that warrants a replacement. In these situations, equipment leasing makes good sense.
Consider These Benefits of Equipment Leasing:
Many equipment lessors do not ask for big down payments, making it easier for businesses to acquire the equipment that they need when they need it.
Leasing equipment for your business allows you to continuously upgrade and enhance what you are working with. You will not be dealing with dated or obsolete equipment that you have no use for and that can be costly to get rid of.
Depending on what you do, you may be able to lease equipment for temporary or short-term situations. That is, say you have a lot of seasonal orders, and you need upgraded equipment to handle the work; leasing allows you to get the job done while keeping your existing machinery. Leasing could be a great way to deal with busier times.
There is a possibility that leasing your equipment will make you eligible for some tax incentives and credits. Speak to your tax preparer or a professional to learn more.
Another perk of a lease is that it makes it feasible to try newer, different equipment without the commitment of an outright purchase. You may not have the budget or money for a top-of-the-line piece of equipment- leasing makes it viable. Leasing provides businesses with the freedom to explore new equipment options, without the burden of using up all your liquidity to buy it.
Need assistance in getting your business off the ground? Think about these benefits of leasing or renting equipment and talk to the industry experts at Rexford Commercial Capital to learn more today!