Every business uses equipment. From large scale manufacturers to niche startups and even one-person operations running out of a home office, equipment is necessary to perform daily operations. The initial cash outlay for equipment can be very cost prohibitive, especially for new and small business owners. However, equipment leasing agreements offer a number of benefits which cannot be gained through purchasing the tools, vehicles, and other things needed for your business.

Expenses Are Lower With Equipment Leasing Agreements

Instead of paying a large upfront sum to purchase equipment, or taking out a loan to cover the initial expense, equipment leasing agreements are much less cost-prohibitive. Instead of one large price tag, equipment leasing agreements spread out the cost over manageable monthly installments. Businesses do not have to go into debt to get access to the equipment they need. Additionally, there are a number of extras which can be bundled into an equipment leasing agreement, such as maintenance, training, and more.

No Depreciation

One of the biggest complaints about purchased equipment comes during tax season. Businesses are in the clear during the first year after purchasing equipment. The entire purchase can be claimed as a tax write-off. The following year, half of the initial cost can be claimed as a deduction. After that, businesses must follow depreciation tables, and there comes a point where equipment cannot be deducted further. Then the cycle starts all over again, spending large sums of money to get new equipment. Equipment leasing agreements do away with depreciation. Because the leased equipment is new, all payment made can be deducted, up to a maximum of $500,000.

Get Access To The Best Equipment

As stated above, purchasing equipment is a one shot deal. Purchased equipment becomes a fixed asset and depreciates over time. When new equipment is needed, the old equipment can be sold at a steep discount, and the difference is typically supplemented with loans. With leasing agreements, things work a bit differently. Equipment leasing agreements allow businesses to “trade up” for newer models, as they become available. This not only saves on wear and tear, but it allows businesses in the IT, medical, construction, restaurant, and manufacturing industries to always stay on the cutting edge of technology and outperform the competition to deliver the best products and services to their customers.

To learn more about the many benefits of equipment leasing agreements, and to get access to the vehicles, tools, machinery, and software your business needs, contact METRIX Capital Group today.