Having the right equipment will help your business run more efficiently, making it easier to meet the demands of your customers and vendors. Unfortunately, most business equipment can be extremely expensive, both to purchase outright and to maintain for years to come. This is one of the many reasons why you should consider equipment financing. Below are just a few of the many benefits of working with a financial provider to finance equipment.
Reduced Cash Outlay
This is one of the greatest advantages of equipment leasing and tends to be one that business owners value the most. Normally, a business owner would outright purchase equipment with cash, dwindling their on-hand assets. With an equipment lease, you can make monthly payments over a set term length, which frees up your capital for other business expenses.
Potential Tax Deductions
If the equipment you finance qualifies for the Tax Code 179 Deduction, you might be able to expense all or at least a portion of the cost. The current limit for the Section 179 tax deduction is $1,000,000, and only equipment that is purchased and put into use in the same year will qualify. Check with your accountant to find out if the equipment you want to finance will be eligible for this tax deduction. GSG Capital has a free Tax Code 179 Analysis that will give you an estimate of how much you can deduct when you finance equipment. Contact GSG Capital at email@example.com
Depending on the type of business you own, financing equipment can help you stay on top of the latest advancements in both equipment and technology. Purchasing equipment will make this difficult, as you’re stuck with the equipment until you sell it. With an equipment financing program, upgrades to newer technologies can be made when your short-term lease is up. These upgrades will give your company a competitive edge and make it easier to keep up with new technologies.
Contact GSG Capital to see how we can help you.