Although your business may be growing at a rapid pace, it doesn’t mean that you are rolling in the profits. However, you still need to focus on creating a workspace for your new employees. While the thought of purchasing office furniture, work stations, computer equipment and more seems daunting, you have another option: equipment leasing. Consider the top three reasons why equipment leasing is in your budget’s best interest.
Grow Without the Budget
Without a significant budget, you may think necessary equipment is far out of your reach. However, leasing provides you with flexible payment options and increased cash flow as your business continues to expand. LeasingIdeas.com suggests, “Your equipment needs will grow and change along with your business. With equipment leasing, you have the option to take on additional equipment or upgrade the equipment you currently possess.” Don’t hold your business back because your budget isn’t on par with your needs.
- Stay budget friendly: Only lease what you need, and take on more as needed. While it is a financially friendly option, you still want to keep costs low.
Keep Good Credit
You currently have good credit, but often times, starting a business can have detrimental effects on it. Without taking out a loan on expensive items, you can be sure your line of credit stays open for other important purchases for the business, yourself or your family. On the other hand, if your credit is less than stellar, this is a smart way to get what you need without the hassle of an extensive application process with a number of lenders.
- Stay budget friendly: Choose a leasing company that keeps standard pricing, regardless of credit score. Making on time payments may in turn help your overall credit score, which will be beneficial for purchases in the long run.
Earn Tax Deductions
As a business on a budget, you want to cut costs wherever possible. Equipment leasing is not only flexible with payments and overall cost, but you may also be able to deduct the lease payments from your business taxes. The government sees leasing as a business or operational expense, decreasing your over-all total payment.
- Stay budget friendly: There are a number of reasons that the IRS would not consider your lease deductible; these reasons include: eventual ownership after a certain number of payments, if payments are made toward interest, or, if after a trial period, you pay it all off in a large sum as opposed to your regular payments – be sure to know the details before making any decision so you can be sure to take advantage of the tax write-off.
Regardless of funds, your growing business has needs that are critical to operation, productivity and maintenance. Thus, if you feel making the necessary purchases is out of the realm of possibility, it’s time to explore other options. Leasing equipment is a great way to grow your business without stretching your already tight budget. Be sure to know the details of your lease, and opt for a flexible payment plan that can be modified down the road if need be.
Bio: Jessica Sanders is an avid small business writer touching on topics that range from social media to copiers and office cubicles. She is a professional blogger and web content writer for ResourceNation.com.
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