Small Business Tips: Renting and Leasing Major Equipment

Small businesses often need the same type of equipment the big businesses are using, however, because of budget constraints, many small businesses often go without. In today’s informed marketplace, small business people are turning to renting and leasing equipment for their office and warehouses.

The Benefits of Renting or Leasing Equipment

There are many benefits to renting or leasing equipment. They include:

A tax write-off
In most states, all rental and leasing payments are tax deductible and are counted as “pre-tax operating expenses.” Be sure to check with your accountant for details.

Great financing
Most leasing companies offer financing packages that won’t tie up your cash flow. They usually waive large down payments, and allow you to use their equipment right away at a minimal up front cost.

Immediate delivery and use of equipment
There’s no waiting involved when renting or leasing equipment. The equipment is usually ready for immediate delivery or pick-up. Sometimes when making a large purchase, a business has to wait several weeks before the right model is available.

Low risk goes into renting and leasing equipment
A great reason to rent or lease equipment is to avoid the risk factor of purchasing equipment that might not be what you expected, or that may become obsolete within a year or less. Leasing companies will allow you to upgrade to the “latest and greatest” equipment when it becomes available.

Less cash expended per month equals more cash flow
Because renting and leasing equipment is affordable, and allows for small monthly payments, this in turn frees you to rent and lease even more equipment for your business.

Easy leasing and rental terms
Most companies allow you to choose your lease terms. They can range from six months to a year, or 24, 36 months or more. Determine what is best for your company and if and when a purchase might be needed.