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Business Equipment Leasing vs. Buying; Why One Choice Is So Much More Profitable

Aug 17, 2007
A common mistake that many first time business owners make is choosing to buy their businesses equipment with a bank loan. In fact, a lot of business owners don't know that there is any other way to get equipment other than buying it. However, those who are seasoned in business know that equipment leasing is by far the more economical choice for a variety of reasons:

How Leasing & Financing Saves Companies Money:

-Lease payments are tax deductible
-Trade in outdated equipment for brand new equipment
-Always have the most productive equipment
-Tax write offs for full depreciation
-Deferred payment options

When you buy equipment with a bank loan, you're stuck with it while it loses value and productivity. When you want to purchase a new piece of equipment, you've first got to find a buyer for the old equipment, most likely taking a loss on the sale, and then get another loan for the new equipment and begin the cycle again.

In the world of business, where productivity and innovation are critical, it just makes sense to ensure that you have the opportunity to upgrade your equipment quickly, easily, and without added cost. While buying and selling can be a cumbersome and expensive process, leasing allows a company to rapidly grow and innovate.

How to Find Business Equipment For Lease

Finding the best deals on equipment leasing for your particular need is really a numbers game. The more you shop around, the better the deal you're likely to find. There are a few things to consider when shopping equipment leasing companies:

-Leasing terms
-Approval time
-Option of payment deferral

Finding the company with the right match of criteria for your particular business needs can mean the difference between struggling each month and having plenty of flexibility to grow your business the way you desire.

Instead of attempting to track down and comparison shop scores of leasing companies, most business owners rely on leasing brokers to find the best deals out there for the type of business equipment they need at terms that are idea. Leasing brokers don't cost YOU any money, their earnings come from the company leasing out the equipment.

Choosing a Broker

Because there may be monetary incentives for an equipment leasing broker to steer you in the direction of a particular equipment leasing company, look for equipment leasing brokers who are willing to provide you with multiple options from which to choose. This allows you to compare the terms and conditions of multiple qualified companies, without having to do the time consuming legwork to get the quotes in the first place.

You'll want to look for an equipment leasing broker that works with a large network of leasing companies. The real value of going with a broker is that they know the industry inside and out and have the contacts to quickly match an equipment leasing company to your needs.
About the Author
Author is a writer for Resource Capital Pros, an equipment leasing broker with a network of hundreds of
equipment leasing companies throughout the United States.
For additional information please visit, http://www.ResourceCapitalPros.com .
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