A company’s ability to grow and to invest in its’ future is largely dependent upon their cash on hand. The challenge that many small businesses face is that in order to increase profits they are often required to increase spending in labor and materials. If a business relies upon equipment to increase their productivity they often resort to either taking out substantial loans or pushing their existing machinery past its’ reasonable capacity putting it into disrepair. Both of these situations can greatly hinder a company’s liquid assets. Many businesses have turned to equipment leasing as an affordable solution.

By breaking down new equipment purchases into affordable monthly payments you are freeing up cash reserves for more profitable uses such as investments in personnel or increased advertising. Another significant benefit to leasing is the fact that lease payment can become 100% tax deductible expenses. In a properly structured lease, the payments are paid with pre-tax dollars which lowers your taxable income. These payments are also locked in at the dollar’s current value keeping them constant regardless of the current rate of inflation. This also avoids increases in interest rates that are common with lines of credit or variable rate loans.

With new equipment in play, small businesses can profit from their increased productivity and pay their leasing fees with direct income rather than cash reserves. This allows for growth without extending expenditures past current receivables. In this way, leasing can ultimately level the playing field between small aspiring businesses and larger, more established companies.

For these reasons, it only makes sense to at least explore your available leasing options and provide your company with the ability to earn more cash flow immediately.