Reasons to Lease Equipment
Many companies choose to lease equipment becuase of financial reasons as it allows companies to manage their cash flow, guard against obsolescence, increase financial flexibility, and reduce taxs.
Top 6 Reasons to Use an Equipment Leasing Company:
The Equipment Leasing Association asked small and medium sized businesses to provide reasons why they lease rather than buy:
- 35% indicated cash flow as the primary factor
- 17% sited dollar value since equipment leasing costs remain fixed
- 13% said they preferred the convenience and flexibility
- 13% indicated taxes deductions as the main attraction
- 13% of companies liked the associated maintenance options
- 9% enjoyed the ability to constantly have the latest technology
There are also other considerations for equipment leasing:
- Expanded credit availability
- Section 179 of IRS code which allows a total annual deductibility of up to $125,000 ($250,0000 for 2008) for leased equipment
- Circumventing budget restrictions
If you are looking at equipment leasing companies for your business, consider Marlin Leasing.