Benefits of Equipment Financing
You rely on equipment and technology every day to operate and grow your business. But the value of those products comes from using them, not owning them.
Equipment leasing offers numerous advantages over other financing methods.
Retain Capital Strength
Purchase the equipment and technology you need today while spreading your payments affordably across time. This allows you to reserve your capital for other day-to-day
expenses. Because a lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, making you more attractive to traditional
lenders when you need them.
Speed of Getting Equipment
Equipment leasing allows you to respond quickly as your need for equipment and technology arises. You can be approved for
financing within hours through minimal documentation and you can have the equipment you need in operation and producing profits for your business, quickly and without hassles.
Flexibility of Equipment Financing
As your business grows and your needs change, you can add to or upgrade your equipment lease at any point through add-on leases or master leases. If you anticipate growth, be
sure to negotiate that option when you structure your lease program. You also have the option to include installation, maintenance and other services (soft costs) if needed.
Avoid Obsolescence
Equipment leasing is an extremely attractive option for all your computer hardware and software purchases because technology becomes outdated very quickly. With a lease, your risk
of getting caught with obsolete technology is lower because you can build upgrades and add-ons into the lease.
Customized Equipment Financing Solutions
Our equipment financing allows you to structure a financing program that addresses your key business issues, including: cash flow,
budget, transaction, and cyclical fluctuations. For example, some businesses request seasonal leases, which allow them to schedule their payments during their busiest months allowing
them to better align their expenses and revenues on a monthly basis.
Tax Advantages
The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your corporate income.
Consult your tax advisor about your specific situation and be sure to capitalize on the tax advantages of an equipment lease.
Asset Management
A lease provides the use of equipment for specific periods of time at fixed payments. It assumes and manages the risk of equipment ownership leaving you with less exposure to risk.
At Direct Capital, we have helped thousands of business owners lease the equipment they need to succeed. Contact us to speak with a skilled finance manager today!