Whether you are a brand new business looking to stock up on new equipment or an established company ready to add more pieces to your collection, figuring out how to finance the equipment can be difficult. Should you buy or should you lease?

 

While there are some pros to buying equipment, we at Main Street Business Capital find that those pros don’t outweigh the cons. Having to deal with maintenance, repairs and high up-front costs are all attached to buying equipment. Fortunately, there is another option: leasing equipment. Here are ten reasons why leasing equipment with Main Street Business Capital is the best choice for you and your business.

 

1. Receive Tax Benefits

One perk associated with leasing equipment is that companies can use the equipment as a tax write off. In fact, depending on the leasing structure, some equipment can have a 100% tax write off.

 

2. Leasing is More Affordable

When you decide to buy equipment rather than lease it, you have to have a large amount of money at your disposal, which can be difficult to acquire. When leasing equipment, companies pay a low monthly fee that goes toward paying off the cost of the equipment. This makes acquiring new equipment more feasible and affordable.

 

3. Helps Preserve Working Capital

With no compensating balances attached to leasing, companies can use their money to invest in the growth of the business. Use the extra cash to invest in salaries, inventory or anything else your business needs.

 

4. Low Risk Involved

When a company leases equipment through Main Street, there are no blanket liens placed on the company like there are with a bank loan. That means a company’s other assets such as accounts receivables and inventory are unencumbered and able to be pledged to secure lines of credit.

 

5. Off Balance Sheet Financing

With Main Street Business Capital you can acquire equipment through leasing while also keeping bank lines open. This helps keep your debt to equity and leverage ratios low.

 

6. 100% Financing Included

When you lease equipment through Main Street Business Capital, you can receive 100 percent financing to cover all equipment costs. In fact, it even covers soft costs like installation, shipping and warranty fees.

 

7. Receive Fixed Terms with Main Street Business Capital

Leasing equipment from Main Street Business Capital allows for fixed terms with zero uncertainties. If a company chooses to go with a bank instead, banks have the power to pull your funds, increase monthly payments or even cancel your loans all together.

 

8. Leasing Equipment Can Be Used As a Budgeting Tool

Businesses can acquire equipment through an operational budget, making it easy to budget for new equipment needs.

 

9. Keep Existing Bank Lines Open

A major benefit attached to leasing equipment is that it doesn’t affect your ability to keep bank lines open. Businesses are able to acquire equipment through leasing while keeping existing bank lines open for other needs.

 

10. Businesses Can Pay As You Go

Because leasing equipment doesn’t require complete payment up front, companies are able to pay for the equipment through installments. The equipment ends up paying for itself, as the company earns money for performing services with the leased equipment. This also helps to increase the company’s bottom line.

 

When it comes to obtaining equipment for your business, it pays to understand all of the ins and outs of your financing plan. Main Street Business Capital can help. Our equipment financing experts can assist you in making the right decisions for your business. We can help you get the equipment you need, in a way that’s most financially feasible. Contact Main Street Business Capital today at (844) 672-2386 for more information.