No matter what industry you’re in, purchasing office equipment for your business can be a major expense– and a major headache. Especially when you’re just starting out, the prospect of finding quality equipment to keep things running smoothly can seem like an impossible task.
What is equipment leasing?
The good news is that you don’t have to purchase office equipment outright. Equipment leasing through Central Business Equipment functions as a loan: we own the equipment, and you rent it at a set monthly rate for a predetermined period of time.
Why is leasing better than purchasing outright?
Leasing equipment is more budget-friendly than purchasing new equipment in the same way that paying a fixed mortgage is more feasible than purchasing a home with cash.
You’ll only be responsible for a certain amount of money per month, which means that finding quality equipment will take a lot less out of your budget.
Since leasing equipment functions as a loan and not a debt, it does not appear as a debt on your financial statements. This makes your business a lot more lender-friendly for your other expenses!
Additionally, purchasing office equipment is often considered an IRS-recognized purchase. Operating leases, however, are tax-deductible and considered overhead expenses.
When your lease is up, you have the option of purchasing the equipment at fair market value (FMV) or for a predetermined amount. You can also continue the lease, return the equipment in exchange for a lease on newer equipment, or simply end the arrangement and return the equipment you’d been renting.
What are some of the benefits of leasing office equipment?
One of the best things about leasing office equipment is the fact that you’ll have access to brand-new, top-of-the-line equipment that you might not otherwise be able to afford.
Using up-to-date equipment increases productivity and drastically cuts down on wasted time and technology issues, which in turn increases your company’s revenue.
New equipment also looks better to customers. It’s important that your customers and clients see you as a company that’s keeping up with industry standards. Outdated, malfunctioning equipment creates delays in productivity that negatively impact company morale and customer relations.
The improvement in company morale can also make a big difference in your overall revenue. Employees who are given equipment that’s up-to-date and technologically advanced will feel more valued, and will be able to do their jobs much more quickly and efficiently. Happy employees make for a successful company!
Another benefit is the increased financial flexibility that comes along with leasing. Since you’re avoiding a massive up-front payment, you have a little more money to work with each month. That money can go back into the company to purchase supplies. And since leasing is considered a loan and not a debt, it keeps your other lines of credit free for additional expenses.
If you’d like to discuss equipment leasing for your Little Rock business, we’re here to help. Send us a message or give us a call today to get started!