Indian RECsIs equipment leasing better than buying business equipment outright? Here at Renewable Global Energy, we know there is no right or wrong answer to this question, as every business has its own way of doing things. If you own a small or medium-sized business and want to acquire new equipment, it's important to know some of the key advantages of equipment leasing. That way you can make the best decision for your business' needs.
Financing Offers Several Key Benefits
Save Cash
Of all the advantages of equipment leasing, Renewable Global Energy has this listed at number one. That's because saving cash is what business owners and CFOs appreciate most. Equipment financing saves your working capital that would otherwise be used if you were to pay cash for your equipment. With an equipment lease program, which is designed around your specific equipment needs and budget, you make affordable monthly payments over time. This allows you to save your money for business expenses, expansion and more.
Tax Benefits
Equipment lease financing presents your business with some fantastic tax benefits. The IRS allows for lease payments to be fully deductible if your business uses the leased equipment. The Section 179 Tax Provision for 2012 lets companies deduct up to $125,000 worth of new and used business equipment. There is also a 50% bonus depreciation that comes into play after $500,000 worth of equipment is purchased.
Avoid Outdated Equipment
Depending on the type of business you own, equipment leasing may help you stay on top of the latest advances in equipment and technology. Being able to make upgrades to newer equipment when your short-term lease is up can give your company a competitive edge. When you buy equipment, you are stuck with it unless you can sell it. So, if your business uses equipment that is periodically updated with better technology and capabilities, leasing might be the best option.
Preserve Business Credit
You are well aware of how important it is to keep your business credit line healthy and open. Getting funding for business expansion, staffing and other operational expenses requires solid credit, and having an open credit line allows you to respond immediately in a time of need. Equipment leasing lets you keep your business credit line open and strengthen the cash flow of your business.
Better Balance Sheets
A more attractive balance sheet can be yours thanks to equipment leasing. That's because your monthly lease payment is viewed as a business expense instead of a liability or long-term debt. As you know, having little or no debt on your company's financial statements is a huge benefit when it comes time to secure business funding
Now that you know the advantages of equipment leasing, it's time to get started. Submit an online application today.
Please contact us at info@rge360.com if you would like to inquire about Equipment Leasing or submit an online application if you are interested in an Equipment Lease (US Renewable Energy Companies only).
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*Please Note: Renewable Global Energy nor MBE Services Inc does not guarantee that Lease Applications made through this website will be approved. All applications are screened and only those who qualify may be approved. By applying for a Lease through this website, you understand and agree that Renewable Global Energy and/or MBE Services Inc reserves the right to assign the Lease to a third-party reputable Leasing Company and also has the right to share the information that you provide in the Lease Application to such Third-Parties.