Depreciating Equipment Value
“If it appreciates, buy it. If it depreciates, lease it.” - Oil Baron, Paul Getty
Depreciating equipment value should be a real concern for your growing business. If you are invested in the ownership of aging or outdated equipment, you are losing money. The cost of increased maintenance, repair or even business lost to more advanced competitors, may eventually outweigh the pros of owning your equipment outright.
Select Business Credit understands the difficulty in each buying-versus-leasing equipment decision.
This is why we have each client speak to one of knowledgeable associates prior to doing business. Select Business Credit offers various leasing options – and we want to find the one that’s a best fit for you and your business.
Leasing your business equipment carries many advantages. You can avoid the ball and chain of depreciating and instead make a plan to continually reinvigorate your business!
The Technology Trap is an issue for any modern business. Depending on your industry, the age or ineffectiveness of your core business equipment may be just the beginning. For instance, you may be in agriculture or manufacturing and your equipment may or may not be up to speed, but when was the last time you took at look at your computers, or your accounting systems. You may be cutting yourself short in areas or advances you hadn’t even considered. Some clear advantages to leasing equipment include the ability to avoid such pit falls.
Other equipment leasing benefits to consider:
- Increased working capital Leasing equipment allows businesses to upgrade or improve without making a substantial, upfront investment. This frees up any liquid funds on hand, making them available to invest to the benefit of the businesses as desired.
- Simplifies budgeting Leasing offers a set payment every month. There are tax benefits to this, but moreover, equipment leasing is an alternative to bank financing – which helps helps businesses manage their bank-leverage ratios.
- Flexibility Select Business credit offers several equipment leasing options. A lease can be modified as often as necessary for a business to remain competitive. Leasing terms might be negotiated on the life of the asset, meaning that at the end of the agreement, the property can be returned or replaced for new equipment.
Contact Select Business Credit today to learn more about the advances of equipment leasing, and how you can stop falling victim to depreciating equipment value.