The Benefits of Equipment Leasing Versus Purchasing

For companies who want to stay on the leading edge of their industries, equipment leasing provides a cost-effective option to meet the changing market and technology demands.

Whether you’re looking for medical or IT equipment, heavy equipment or machinery, the decision to lease versus buy depends on the type of equipment you need as well as the type of business you’re in. If you’re in need of office equipment for 20 employees or looking to replace outdated lab equipment and you want to avoid investing capital in your new equipment, lease-financing through an accredited equipment leasing company is often a smarter solution than purchasing.

We often speak to business owners who ask about the benefits of equipment leasing versus buying. From avoiding large down payments to conserving working capital, below is an overview of the main benefits you should consider when you need to upgrade your equipment.

#1) Equipment leasing makes it easier and more affordable to upgrade your equipment.
Businesses often struggle to stay ahead of the rapid technological shifts in the marketplace. For industries that demand frequent upgrades to stay ahead of the competition, equipment leasing allows you a cost-effective way to acquire the equipment you need, and easily upgrade when you need to. It is important to note that if you finance equipment, you are still required to pay for installation, maintenance, training, and implementation.

Affordable and effortless are two important qualities to look for as you consider your equipment leasing options. When you work with Providence Capital Funding, Inc., we can finance up to $250,000 with a one-page application. On the other hand, most banks require comprehensive financial information documents that slow down the process.

#2) Equipment leasing provides payment plans designed to meet your budget.
With flexible lease-financing rates, you will incur lower payments than you would with a loan for direct purchase. Leasing offers you a fixed financing rate instead of a floating rate that is customized to meet your cash flow, budget, and forecasted fluctuations of your business.

#3) Equipment leasing allows you to avoid large down payments.
Since leasing provides 100% financing, you can avoid large down payments. With more working capital and affordable lease-financing rates, you can focus on growing your business. Providence Capital Funding, Inc., does not require a capital investment to acquire equipment.

#4) Equipment leasing offers certain tax advantages.
Most lease payments can be deducted from your corporate income. Leased equipment shows as a lease expense on the balance sheet, rather than a purchase. We suggest you check with your accountant or tax professional about specifics.

#5) Equipment leasing approval is faster and more efficient.
When purchasing equipment through bank loans, applicants may wait weeks to hear whether or not they will receive funding. This is in part because loan applications through a bank necessitate numerous documents—for both personal and business credit history. When you finance your equipment through an equipment leasing company like Providence Capital Funding, Inc., we approve your application within 24 hours.

Request a free quote here or call us at 1-800-341-1288 to discuss your needs with an equipment leasing professional.