Businesses of all types and all sizes often put off buying new equipment due to budget constraints, uncertainty around legislation or concerns over the economy. Even in the best of times, companies often continue to rely on outdated and unreliable equipment because they are afraid to pull the trigger and make that financial commitment.
There is a solution for these businesses who desire new equipment but are not willing to buy it; leasing is the obvious answer. For many businesses, a leasing company, like Trimarc, is a viable option for obtaining the equipment required to keep your business updated and flexible. Start the new year by leasing the updated equipment your business needs. Here are a few benefits any business will enjoy by leasing equipment instead of making a purchase.
Leased Equipment as an Operating Expense
In a true lease, you can deduct the monthly payment as an operating expense. When you buy equipment, you can only deduct the value of depreciation. Therefore, the tax advantage is greater if you lease equipment.
Stay Up to Date
As we have mentioned several times before, leasing protects against obsolete technology. When you buy equipment, you are basically stuck with it, even if it becomes outdated. When you lease equipment, you are basically renting over a period of time and once that time frame is complete, you are able to lease new equipment that meets current technology demands.
One way to look at it is you want to buy equipment that will appreciate in value and lease equipment that will depreciate in value.
Reduce Cash Outlay
Saving cash is a primary goal for many business owners. Leasing preserves your working capital that would otherwise be used buying equipment. The money a business saves can be used for other purposes, like hiring much-needed personnel for example.
Get Approved with Ease
Getting approved for a business lease is a lot easier than getting approved for a loan to buy equipment. You won’t need collateral, a high credit score or a huge down payment either. Best of all, you don’t have to deal with a mountain of paperwork.
Better Balance Sheets
Another benefit of equipment leasing is that you get to keep a balance sheet that is quite attractive. This is because monthly lease payments are viewed as a business expense instead of a long-term debt or liability. As many business owners know, having no debt or very little debt on the financial statements is a big deal.
What Can Your Business Lease?
You might be a business owner wondering if there is equipment that you can lease instead of purchase. With Trimarc, you can lease a variety of equipment and assets critical to your operation.
Even the most basic office setting requires certain equipment. The basics include office furniture, copiers and printers and even computers.
Computers are basically useless unless you have the right software. The right software helps your business run smoothly.
Medical and Laboratory Equipment
As a consumer, you have probably experienced the high cost of healthcare. Some of that expense can be attributed to the high cost of effective diagnosis and treatment. Medical companies can keep their costs down by leasing items like CT scanners, lasers and X-ray machines.
Often, leasing is the first choice for general contractors, remodelers and roofers. Many of these types of operations just don’t have the capital to buy heavy construction equipment, especially if it is something they won’t use all of the time.
Restaurant and Hospitality Equipment
As many of you may already know, the restaurant business is very risky. And many new restaurant owners simply do not have the cash on hand to buy the stoves, exhaust hoods and steam tables they need. This is why leasing is a popular option for restraint operators.
Trimarc is an independent equipment lease financing company. We are always looking for new ways to bring value to your business. In fact, you are the most important member of our team. Our team of experienced and dedicated professionals will help you meet your equipment leasing needs with friendly and personal attention.
We are focused on building financial solutions designed for your business. Give us a call today.