Do you want to stay ahead of your competitors by utilizing the latest equipment? Or do you need specific equipment for a short-term project? Whether you’re looking for affordable equipment or need something for a short duration, consider leasing. As compared to buying equipment, leasing can be the right choice for acquiring equipment because it provides a cost-effective and low-risk solution. Leasing is a great alternative to purchasing or financing equipment. It allows you to get access to the needed equipment for a fixed monthly payment. Construction is a highly competitive industry and companies need access to the best tools and machines besides manpower to stay ahead of the game. From Backhoe Loaders to Excavators, several equipment and tools are needed for construction jobs. And to get the right machines, owners have the option to purchase, finance, rent, or lease the equipment. As compared to other options, leasing equipment has become popular because it helps you get the needed equipment and machines without breaking the bank.
Buying Vs. Leasing: Why Lease Equipment?
Construction equipment includes several expensive machines and vehicles that are needed for different tasks onsite. Buying all the equipment can cost thousands of dollars which can be difficult to afford. This is where leasing can be a viable solution to get the needed equipment while staying financially stable. So, if you’re confused to make a lease or buy decision, here are some reasons to consider leasing to improve your cash flow.
- Lower Ownership Cost
As compared to buying equipment that requires paying a huge down payment and expensive monthly installment, leasing is a cost-effective way of getting the needed equipment. You don’t need to pay a high down payment. The reliable leasing services provide a wide range of construction equipment at affordable and flexible payment options. A leasing plan can be tailored to fit your specific needs. It means that you get lower monthly payments as compared to loan installments that will free up your cash flow. Leasing equipment will save your working capital and that money can be used for other business expenses.
- Get Latest Equipment
Buying equipment makes you the owner of the machine which can be a good thing. However, with constant technological advancements, the equipment you purchased a few years ago may become outdated with the launch of a new model. However, leasing equipment allows you to get access to the latest advances in equipment and technology. Whether you’re planning to keep the equipment for the short-term for a specific project or want to keep upgrading outdated equipment, leasing is a better choice than buying. Leasing helps constructions companies stay at the cutting edge in their industry. It also helps you try out new equipment before buying to make sure that works for you.
- Tax Benefits
When you purchase equipment, you need to pay sales tax on the complete purchase price. However, leasing comes with potential tax benefits. When you lease construction equipment, you get the deduction of lease payments as part of the business expense. It means that leasing lowers your taxable income and preserves working capital.
- Greater Flexibility
Construction companies handle multiple projects at a time which means they need some equipment for the short-term only. Leasing provides flexibility to choose the lease term and payment options that work best for your budget and needs. On the other hand, buying a machine or equipment outright means you get stuck with it, even if the equipment becomes obsolete. But leasing frees up your cash flow and works best for your budget. It also gives you quick access to equipment with no need to stay stuck with it when no longer needed.
