LEASE vs. BUY
What are the Benefits of Equipment Leasing?
Is equipment lease-financing better than buying business equipment with cash or traditional financing? Here at Commercial Capital Company, LLC, we know there is no right or wrong answer to this question, as every business has its own way of doing things. If you own a small or medium-sized business and want to acquire new equipment, it’s important to know some of the key advantages of equipment leasing. That way you can make the best decision for your business’ needs.
It Can Save You Cash
Of all the advantages of equipment leasing, we have this listed as the number one priority by business owners. That’s because saving cash is what business owners and CFOs appreciate most. Equipment financing saves your working capital that would otherwise be used if you were to pay cash for your equipment. With an equipment lease program, which is designed around your specific needs and budget, you make affordable monthly payments over time. This allows you to save your money for operations, expansion, unforeseen events and more.
Preserve Business Credit
You are well aware of how important it is to keep your business credit line healthy… and open. Getting funding for business expansion, staffing and other operational expenses requires solid credit, and having an open credit line allows you to respond immediately in a time of need. Equipment leasing lets you keep your business credit line open while strengthening the cash position of your business.
Avoid Outdated Equipment
Depending on the type of business you own, equipment lease-financing may help you stay on top of the latest advances in equipment and technology. Being able to make upgrades for newer equipment when your short-term lease is up gives your company a competitive edge. When you buy equipment, you are stuck with it unless you can sell it before costly repairs come into play. So, if your business uses equipment is periodically updated with better technology and capabilities, leasing can be the best option.
Better Balance Sheets
A more attractive balance sheet can be yours thanks to equipment leasing. That’s because your monthly lease payment may be viewed as a business expense instead of a liability or long-term debt. As you know, having little or no debt on your company’s financial statements is a huge benefit when it comes time to secure business funding.
Now that you know the advantages of equipment leasing, it’s time to get started with Commercial Capital Company. With our on line equipment lease application you can safely and securely apply for a lease through our website today.
Other Benefits Include:
• You can usually include taxes, freight & other costs related so you don’t have out-of-pocket expenses.
• You pick the length of term. 24 to 60 month leases are common.
• Protection against inflation. Your leasing costs remains the same throughout the life of the original agreement.
• You receive all factory warranties.
• You handle your title and licensing.
|Leasing Compliments Bank Lines||X|
|Leasing Extends Capital||X|
|Terms and Payments Are Flexible||X|
|Protection Against Inflation||X||Depends|
|You Select the Equipment You Want from Any Vendor||X||X|
|Title and Licensing||X||X|
|Taxes Paid in One Lump Sum||X||X|
|Taxes Paid Over a Period of Time||X|