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The Wide-Reaching Benefits of Business Equipment Leasing

The Wide-Reaching Benefits of Business Equipment Leasing

Which is better: buying or leasing equipment? This is a question many entrepreneurs and business owners struggle with on a regular basis, and unfortunately there’s no “one size fits all” answer. The ultimate choice you make will depend on the size of your business, your specific equipment needs and the amount of capital you have to invest. In many situations, business equipment leasing is the way to go — for a number of reasons. Some of the key benefits of leasing include:

  • Money savings: This is probably the greatest advantage of equipment leasing, as it can save you a significant amount of cash in the long run. Through equipment leasing programs, you can make payments over a set period of time in a manner that properly aligns with your budget. This gives you more working capital to devote to other important business expenses and expansion efforts.
  • Tax benefits through Section 179: This law allows businesses to deduct up to $500,000 in new and used business equipment. While these benefits do also apply if you actually purchase the equipment, the IRS allows you to deduct lease payments under Section 179 as long as your business makes use of the leased equipment.
  • No more obsolete equipment: Equipment leasing is one way to help your business constantly stay on the cutting edge of technology. Engaging in short-term leases enables you to make upgrades to newer equipment much more quickly and in a financially efficient manner than if you were to purchase the equipment outright. When you buy technology, you are stuck with it unless you can sell it, and even then you’ll have a difficult time finding buyers who are interested.
  • Credit preservation: Keeping your line of credit healthy should always be a priority for any business owner. Equipment leasing enables you to keep that line open and strengthen your cash flow, making it easier for you to get funding for growing your business and paying for regular operational needs.
  • Flexibility and ease: Applying for a lease is quite easy, so you can have the equipment you need in your business almost immediately. You also have the flexibility to work within your budget constraints and make any upgrades as you need them.

Fidelity Capital has become a leader nationwide for helping businesses with their equipment leasing and financing needs. The company has outstanding relationships across the country, with a network of preferred vendors that give you the knowledge and resources you need to truly grow your business. To learn more about business equipment leasing and if it’s right for your company, we invite you to contact us.

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Choosing the Right Capital Equipment Financing Provider

Choosing the Right Capital Equipment Financing Provider

It’s important for your company to get the most up-to-date equipment possible so that you can stay ahead of the technological curve. To accomplish this, you should consider financing your equipment through a leasing agency. Leasing your equipment comes with a variety of benefits. The most notable is that you can save a significant amount of money on leasing, leveraging the high-tech equipment now at your disposal, while avoiding the financial hit that comes when you must get rid of equipment that becomes obsolete or no longer usable. Compared to bank loans or paying in cash, lease financing also gives you much greater flexibility in your payment plans. No two small businesses are alike, and depending on your industry you might have unique needs. With this in mind, choosing the right equipment leasing company should be a process that narrows down the best fit for you. The following are some important factors to consider when choosing your equipment leasing provider:

  •  Experience: Leasing firms that have more experience in providing these types of services will be more likely to understand the various options available to you. They can make the best recommendations for your particular needs and assist you throughout the financing process so that it goes as smoothly as possible.
  • Owning vs. using: Some leasing companies many prefer that you own the asset they will be leasing. When this is the case, consider choosing a provider that offers lease-to-own plans. If you are simply concerned with using the asset rather than owning, a regular leasing plan is more likely to give you what you need.
  • Size: The sizes of leasing providers vary wildly, from large banks to small, independently owned firms. A smaller firm is more likely to give you the personal attention you need, while a larger organization might have more resources available. Your best approach is to find a company that offers the best of both worlds — great service combined with flexible options.
  • Reputation: Last but certainly not least, you want to be sure that the organization you choose to work with has a reputation for success. Believe it or not, large banks reject most small business loans. When it comes to equipment leasing, you need a provider that ensures your financing plan gets accepted and that the process goes smoothly for your business.

Fidelity Capital is a national lender for equipment financing and leasing. Due to the relationships the company has built over the years, it has a vast network of preferred vendors ready to help your business. When exploring your options, take these guidelines into consideration and find the leasing provider that matches your needs perfectly.

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