The Benefits of Leasing Business Equipment
Operating a business means you have to stay on top of the latest technology, securing equipment and machinery that puts you ahead of your peers and on the cutting-edge of industry advancements. But when the need arises, don’t feel pressured to buy.
When you buy business equipment, you pay for the product outright, which often means high initial costs that can absorb your liquidity. If you have the capability to buy, you gain full ownership of your equipment, but is that always a good thing? Ownership places the responsibility on you to repair equipment when it’s broken and replace it when it becomes obsolete.
Leasing equipment, on the other hand, does not require high initial costs and offers flexible, fixed payment options. This helps conserve your working capital and enables you to get the equipment you need, when you need it. You may not own your equipment, but you are not constrained by it, either. You can upgrade at any time during the lease, combating the frequent technological advances that often leave businesses behind the competition. In a competitive market, leasing may be the best option for you.
Leasing is the preferred option for business owners who want to:
- Conserve working capital.
- Reduce the risk of equipment obsolescence.
- Gain possible tax and accounting benefits, which should be discussed with your CPA.
At Bank SNB, we offer the CashFlow LEASE program for businesses that find equipment leasing to be the best solution. Learn more about how CashFlow LEASE can help your business be successful.