Want to expand your inventory? Choosing whether to lease or purchase equipment for your business can be tough decision. While both have advantages and disadvantages, leasing is far feasible and preferable to purchasing equipment upfront. Leasing equipment and machinery has various hidden benefits that should not be neglected, particularly in terms of maintenance expenses and tax write-offs. Some of the top ones include:
- Less expensive in the short term
Leasing equipment is a significantly more cost-effective choice in the short run. While the fees can pile up over time, leasing in the short term helps your company to save significant money for future developments. This is extremely beneficial if your organization is still expanding or if you require financing for a big purchase.
- Easy to upgrade equipment
Having the right equipment can help you boost your productivity and outcomes. If you realize you don’t have the necessary equipment or machinery for the job, leasing makes it easier than ever to upgrade. This is because you are not locked into an item you recently purchased, thereby making inventory upgrading easier than ever.
- Lease terms are more flexible
In addition to making it easier to upgrade, equipment leases are far more flexible than equipment purchases. If you need to improve or replace machinery, equipment leasing offers customizable terms that work for your company. Buying simply does not allow this option because you are committing to a long-term purchase.
- 100% financing is usually available
One significant advantage of leasing is that you may include all additional costs in the lease, such as delivery, training, insurance, and so on. This funding flexibility is rarely offered through banks or other lending institutions.
- Eliminates the need to discard old equipment
Existing equipment depreciates and becomes outdated as soon as the new equipment is introduced. When you acquire, you risk ending up with machinery that does not meet industry standards. Instead of throwing out outdated machinery every few years, leasing assures that you always have the best equipment available.
- More accessible to get equipment
You may not have excellent credit, particularly if you are a new business. Leasing eliminates the necessity for years of credit history because you are not taking out a loan to finance an asset purchase.
- Leasing allows a business to remain competitive
Finally, leasing ensures that your business stays ahead of the competition. Leasing is the easiest choice for staying ahead of the competition, whether it’s assisting firms with lower cash flows to grow or using the most recent machinery available. If you don’t have the right machinery, your clients will most likely choose another company that does.
So, these were some of the benefits of leasing heavy equipment and machinery. If you are looking for a reliable equipment leasing company in Abbotsford, rely on none other than Sandhu & Sran Leasing & Financing. We provide best-in-class equipment leasing services that are second to none. Contact us to discuss your leasing and financing needs.
