Equipment Financing
Companies big and small are looking for ways to streamline the budgeting process and forecast expenses. When a major piece of equipment shows up as a line item, it can disrupt an entire organization’s business strategy and limit growth potential depending on the equipment financing solution they choose. Rental/Leasing usually doesn’t require a downpayment or other cash outlay like a long-term loan or outright purchase does.
Cash flow should be reserved for critical needs and initiatives that generate ROI, or be used for unexpected expenses or liabilities. Some equipment purchases can cost thousands or hundreds of thousands of dollars and require a major outlay of capital. Rental/Leasing allows for payments and maintenance costs to be stretched out over a longer period of time.
Preserve your cash flow...
Secure the capital equipment your business needs with flexible financing structures to improve business performance while preserving cash flow.
The length or term of a lease agreement can be structured to help your organization’s budget and achieve a more desirable monthly payment, or payment schedules may be shifted from monthly to quarterly if preferred. Other terms of the lease can also be modified, including the commencement date and first payment date, as well as which day of the month you’d like payments to be due.
When you finance equipment/software for your business using a purchase option rental or an Equipment Finance Agreement (EFA), allowing you to pay for it in installments over several years you can deduct 100% of the purchase price on your federal return in the tax year in which the equipment is put in service.
NOTE: The above is promotional material. It does not affect the terms of any contract with us. It is not intended to and does not constitute tax advice, and does not take into account the effect of state tax laws. It is based on assumptions that may not apply in your situation. You should contact your own tax advisors to confirm how applicable tax rules apply to your business and your equipment/software acquisition.
