Top 5 Reasons to Lease your Shop Machinery

The Top 5 Reasons to Lease Your Shop Machinery

Equipment Leasing Can Offer Significant Benefits for Small Businesses

With an economy where new technology is constantly emerging and competition is on a rise, small businesses face some challenging decisions especially when it comes to investing in shop machinery. While buying is the traditional route, leasing shop machinery can be a compelling alternative.

Let’s explore five top reasons why leasing shop machinery can be a game-changer for small businesses.

1. Save cash and increase your buying power

Small businesses often operate with limited capital and leasing shop machinery allows them to access equipment without the hefty upfront costs associated with buying. Moreover, leasing offers lower, monthly payments over the lease term allowing you to conserve your capital and invest it in other revenue-generating activities such as marketing, employee training, etc…

2. Fast and easy access to advanced technology

Leasing shop machinery provides small businesses with the flexibility to upgrade machinery to the most advanced technology as per the business needs. By regularly upgrading machinery at the end of lease terms, small businesses can stay competitive and enhance their operational efficiency, while reducing downtime and improving performance.

3. Accounting & tax benefits

Leasing shop machinery can offer attractive tax benefits for small businesses. Your entire lease payments are considered operating expenses which can be claimed, reducing your taxable income. Also, since lease payments are consistent and therefore predictable, they are easier to track and budget compared to the capital cost allowance and depreciation associated with equipment ownership.

4. Flexible lease terms

You can optimize your use of the equipment while generating revenue with flexible lease terms. Lease payment schedules and terms can be configured in a way that is best suited for your business’ financial cycle. Flexible lease terms can be especially important for small businesses that have seasonal fluctuations and want to adjust operations accordingly.

5. Preservation of credit

Maintaining a healthy credit profile is critical for small businesses, especially when seeking financing for growth opportunities. Leasing shop machinery doesn’t impact credit lines, as it is considered an operating expense rather than a long-term liability. This in turn preserves the credit capacity of the business, allowing for credit facility when securing working capital or expansion loans.

Focus on Your Shop, Do What You Do Best

Leasing shop machinery is a smart choice for small businesses in an ever-evolving, competitive industry. The low up-front costs, access to advanced technology, tax benefits, minimal maintenance, and credit preservation associated with leasing make it a compelling option.

Do you have needs for heavy equipment or shop machinery and are considering leasing as an option? Get a 60 second lease estimate today! Our knowledgeable and friendly team is always here to support you every step of the way and provide the leasing solutions you need to thrive in your industry. No-pressure tactics, no runaround, just fast and friendly service.

Get 60 Second Lease Estimate

By Published On: August 16, 2023Categories: Equipment Leasing