Commercial Equipment Financing

Purchasing expensive commercial equipment can be taxing on your business capital. Instead of draining valuable resources, opt for commercial equipment financing.

There are many financing options available from leasing to purchasing and everything in between. Below are commercial equipment financing tips to help you find the right financing solution for your business needs.

Purchase or Lease Financing

There are many options with commercial equipment financing with flexible terms and rates. Explore commercial equipment financing options to see which one fits your needs. They both offer their own unique set of advantages.

Leasing is a strong advantage for your business if you are in the technology sector where equipment becomes obsolete within 1 - 2 years. Leasing is perfect for technology sectors because then you don't get stuck trying to sell equipment that doesn't have a buyer's market.

The obvious benefit to leasing is that you avoid tapping your business capital. There are huge initial cost savings with leasing. It doesn't add to your assets (since leased equipment is not considered property), but you're released from other responsibilities that purchasing would normally carry. Plus, with leasing you can write off interest and lease payments as an ongoing business expense.

Purchasing is great for a business sector that uses equipment that generally needs little maintenance or is known for durability. Even if you have to hire a maintenance service if and when your equipment does break down, it may still make more economical sense for your business to purchase instead of lease. And just like leasing offers tax benefits, so does purchasing. You have almost full write-off power the first year you own your equipment.

There are definite benefits in either situation, but your CPA can crunch some numbers to determine which commercial equipment financing option brings you the biggest tax benefits.