For many businesses, this is the number one reason to lease. With our equipment lease program, which is designed around your specific capital needs and budget, you make affordable monthly payments over time, saving your money for business expenses, expansion and operations.

Equipment leasing may help you stay on top of the latest equipment advances and technology. Being able to upgrade to newer equipment when your lease is up can give you a strategic advantage too. This is especially a good option for companies whose equipment is periodically updated with better capabilities and newer tech.

Every business owner knows how important it is to keep your business credit lines healthy and open. Getting funded for property purchases, expansions and operations all require strong credit. By utilizing lease financing for your equipment needs, you can keep your bank lines open so you can respond quickly to opportunities. Leasing helps you build your credit profile without consuming your credit availability.

Monthly lease payments are viewed as business expenses instead of liabilities or long term debts, strengthening your bottom line. Having little or no debt on your financial statements can be a huge benefit when it becomes time to obtain business funding.

There are two main types of leases. Each has distinct advantages. In operating leases, the lessee has the right to use the property for a period of time. At the end of the lease period the property is returned. The lease expense is fully deductible and does not affect the balance sheet. In many ways an operating lease provides you the benefits of an extended rental without the headache of long term ownership. In a capital lease, however, the lessee assumes some of the risks of ownership and enjoys most of the benefits. A capital lease is recognized both as an asset and as a liability (for the lease payments) on the balance sheet. The lessee gets to claim depreciation on the asset (including Section 179) and also deducts the interest expense component of the lease payment each year. In general, capital leases recognize expenses sooner than equivalent operating leases with accelerated depreciation expenses available. Capital leases often work best when you want to own the equipment at the end of the term instead of giving it back.

Section 179 is an easy to use tax incentive that gives you a strong incentive to invest in yourself by adding capital equipment. You get to acquire new equipment now while keeping more capital in reserve, a strong win for you and your business. With a capital lease, you can take full advantage of the Section 179 Accelerated Depreciation Deduction for acquiring equipment yet make small payments instead of a large capital outlay. You can acquire and write-off up to the deduction limit worth of equipment this year without actually spending that amount out of pocket by taking advantage of the Section 179 Deduction. Capital leases can include “$1 Buyout” and “$100 Buyout” leases along with “10% Purchase Upon Termination (PUT)” leases. In many cases, the amount you’ll save in taxes will be more than the total of your first year’s payments. Contact us now to discuss this option. The equipment must be put into service by midnight on December 31st.