PAYING BY CASH OR CREDIT FOR YOUR COMMERCIAL EQUIPMENT?
Quick, hassle-free business financing (leasing, lease-to-own, rent-to-own, etc.) may be a better option.
ARE ALL BUSINESS DEBTS BAD?
A small business may want to avoid debt, paying with cash for purchases instead of leasing. Reducing business debt makes sense, but using cash from your business account to pay down your personal mortgage may be smarter, since business debt is tax-deductible.
CASH-FLOW IS CRITICAL
Maintaining a healthy cash balance at your bank can help your business survive competition and slow periods. Negative bank balances can also be costly and may potentially damage your good credit rating, whereas leasing your purchase can help your cash flow.
BUILD YOUR BUSINESS CREDIT HISTORY
Good business credit can also save you money because suppliers will check your credit history to determine if they should do business with you and under what terms. Will they give you 60 days interest-free to pay, or C.O.D.?
LEASING YOUR PURCHASE MAY PROVIDE TAX SAVINGS!
Leasing allows your business make more “after-tax” money. If paying with cash or credit, you must depreciate your equipment and write off the interest expense portion, whereas (in most cases) lease payments are 100% tax deductible.
SAVE MONEY (AND TIME)
If purchasing items from more than one supplier, you may need only to complete one credit application for ALL your business equipment purchases. Some leasing companies will finance many of your assets, including espresso and other equipment, furnishings, POS systems, signage, HVAC (ventilation) systems, delivery trucks and more.