The Advantages of Leasing Office Equipment
Should you lease or buy? This question has plagued businesses for years. Business owners may feel pressure when it comes to purchasing new equipment. Many may stress over trying to find ways to fit the new equipment purchases into their budget. It may feel empowering to own your own equipment, but there are upsides to leasing that may make it a better option.
Painless Upgrades
Keeping pace with the never-ending march of technology is painless while leasing. Users may want new equipment or older equipment may fail. Keeping a short-term lease will allow you exchange equipment when your contract ends. Replacing equipment is as simple as exchanging the hardware when your contract ends. This will ensure that your users always have the newest and best equipment.
Easier Than A Loan
Loans for purchasing equipment often ask for financial records. Newer companies may not have the required financial history. Leases may have more flexible terms than a loan, leaving you unhindered by large loans. A lease will also not tie up a line of credit, allowing you to leverage that for other things.
Lower Upfront Cost
Since you will not pay the full cost of the lease up front, you can afford to lease more equipment. This can allow your business to expand faster with less capital. Lease payments can also make your budget easier to manage by spreading the cost of equipment out.
Tax Deductions
Lease payments are federal tax deductible. With purchased equipment you can only deduct the depreciation. By leasing, you can deduct every lease payment. This may allow you to help keep the total cost of lease lower. It will also help fit new equipment purchases into the budget by freeing up some taxed income. For your office equipment needs, please contact Century Business Products. Century Business Products has been delivering quality services for 30 years.