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The Pros and Cons of Leasing Your Hardware and Office Equipment
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By Gary Barzel


The Benefits of Equipment Leasing

The cost of leasing equipment is considered an expense. A loan, however, is considered a debt. This will positively affect the net worth of a small business.

Payments are tax deductible. If the company is not planning on purchasing the equipment at the end of the lease, then it can claim the lease payments for a tax deduction.

More capital is available. Equipment leasing avoids the down payment that most lending institutions require to receive a loan. In addition, leasing companies often cover the costs of the equipment's installation and maintenance.

Avoid outdated technology. Advances in technology can greatly devalue equipment or render it obsolete. Through equipment leasing, the company has the option to receive an upgrade every few years.

Always have what you need. As your business begins to grow or change, so will your equipment needs. Instead of tying your business down to inadequate or inappropriate equipment, leasing brings with it the flexibility to choose the equipment your business needs right now.

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