What to Know Before Leasing Equipment for Your Business

Equipment leasing is a great financial choice to help expand and grow your business, no matter if you are a newly launched small business or a well-established company. Leasing your equipment instead of purchasing it can help you stay competitive while also maintaining a healthy cash flow and conserving your working capital. The first step is to determine your equipment leasing needs. How long will you use the equipment? If it is something like a computer, which will need to be upgraded, consider a much shorter lease term than something like a vehicle, which will be useful for years. Consider also what your goals are for your leased equipment. You could be leasing to create productivity increases, cash savings, or advantages over your competitors. Your goals will help determine your equipment needs, so realizing it is paramount for business success. The next step is to decide on the perfect equipment leasing company, like Synergistic Funding. Make certain that you are choosing a company that specializes in the equipment you need, and that has experience in your industry. You want a leasing company that will take a vested interest in the success of your business, and will make you aware of all of your financing options. The final consideration you need to be aware of before you sign a contract is to understand how leasing will affect your financial situation. Leasing is not considered a debt, so it won’t count against your assets when someone is determining the value of your company. In addition, your leasing payments will likely be completely tax deductible. Purchasing equipment only allows you to deduct the amount your acquisition depreciates. Equipment leasing, then, means more money in your pocket and less stress for you and your employees.