Every business relies on equipment of one form or another. From office fixtures and computer workstations to point-of-sale systems, larch construction vehicles, manufacturing machines, lab equipment, the list goes on – equipment is necessary to thrive and grow in a competitive marketplace. Equipment can also be very expensive, so businesses need to decide whether it is fiscally better for them to purchase or lease the items they need.

The Advantages of Purchasing Equipment

Purchasing equipment typically has a steep capital outlay, but it also offers a number of benefits. First, owned equipment can be used for tax deductions under depreciation. Second, purchased equipment offers assets to businesses that can be used as collateral for larger financing down the line. Owned equipment can be leveraged for asset-based financing and sale-leaseback financing for businesses that need fast access to working capital while still retaining use of the vehicles, machinery, and tools they use on a regular basis.

The Advantages of Leasing Equipment

Leased equipment may not provide businesses with owned assets, but it offers a number of other advantages. Leased equipment qualifies for tax deductions under IRS Form 179. Additionally, leased equipment is easy to upgrade, which is a major benefit for businesses that need access to the latest and greatest technology, such as healthcare providers and IT companies. Leasing agreements also feature maintenance and training options, which can greatly reduce the costs of hiring in-house specialists or third-party repair centers. Leasing is also more accessible to new and small businesses that may not have the capital, collateral, or credit ratings to purchase the large equipment pieces they need.

In the end, whether you decide to purchase or lease equipment all depends on the type of business you own, your finances, and your goals. True & Constant Lending Group offers comprehensive financing for businesses that want to purchase or lease equipment. From plans for startups to large businesses, government agencies, and more, we offer customized plans that make it fast, easy, and affordable for you to get the equipment you want. Contact our offices today to get started.