- Should You Finance/Lease?
Your Business, Your Financial Choice
Equipment Finance/ Lease - Auburn, CA
When comparing an equipment lease vs. an equipment buy, analysis of qualitative factors and what is best for your company becomes a top priority. At National Technology Leasing, we understand that all equipment — including your high technology medical equipment — depreciates, which can greatly affect your taxes, accounting procedures, and various financial aspects of your company. Examine some of the reasons you should finance/lease, and how it will benefit your company.
Should you lease?
Last year, almost $200 billion worth of purchased business equipment was financed via lease contract, according to the Equipment Leasing Association of America. On a percentage basis, lease financing accounts for approximately one-third of all equipment purchases made by U.S. businesses. In an equipment lease vs. equipment buy analysis, it just makes more sense to lease. But don’t take our word for it. Consider the lease vs. buy qualitative factors, and then you will see why National Technology Leasing is an equipment leasing expert. Leasing our high technology medical equipment accounts for depreciation, which benefits you by reducing your taxable income. Considering that eight out of 10 U.S. companies lease some or all of the equipment needed to run their business, doesn’t it make sense to think about leasing for your equipment needs?
Equipment Lease vs. Buy Analysis
When it comes to leasing high technology medical equipment, accounting for depreciation more quickly is just one of the benefits that will appear in an equipment lease vs. equipment buy analysis. Read on to see how you can improve your tax return, save on capital expenditures, stay within your budget, and beat inflation.
Most often noted as a leading form of financing, leasing outshines other methods due to its potential tax advantages over other financing options. For example, if a lease is structured in a certain manner, the lease payments, unlike loan payments, can be expensed in the period in which they are paid as a general operating cost. For most lessees, this results in a lower after-tax cost for the credit, which results in a lower tax liability when compared to depreciating the equipment cost and expensing the interest portion of the loan payments. Expensing the full payment is also easier to account for on a company’s financial statements because only one general ledger entry is necessary to "book" the expense (instead of two entries necessary to account for loan payments). In terms of looking at an extensive equipment lease vs. an equipment buy, an analysis of qualitative factors clearly shows the benefits of financing new equipment through a lease.
By utilizing National Technology Leasing’s programs, a company can finance 100 percent of its equipment costs. Since there are no down payments, security deposits, or origination fees to be paid, a customer can utilize cash and other credit facilities to manage short-term credit needs and generate a return on these assets in excess of the cost of the term financing associated with the acquisition of the capital asset. This same rationale justifies leasing to those companies that can afford to pay cash for equipment — if they earn a return on assets retained in their business that is in excess of their cost of capital, it would be warranted to consider a proposal from National Technology Leasing. If you have considered the equipment lease vs. buy analysis we have provided and would like to learn more about the qualitative factors and benefits of leasing, contact National Technology
Stay within Your Budget
Leasing allows a company to acquire needed equipment today without a large capital outlay from the current operating budget. If a customer requires new equipment, but hasn’t allocated the resources necessary to acquire it, National Technology Leasing can assist in structuring a viable financing option that allows the customer to acquire the equipment and maintain their budgetary integrity. Considering the lease vs. buy qualitative factors, it makes sense to lease your new equipment through National Technology Leasing.
National Technology Leasing’s lease payments are fixed for the term of the lease. When adjusted for future inflation, the net cost of the lease will actually decrease while gross revenues increase. Considering the rate of high technology medical equipment depreciation and the ability to pay less as time goes on, leasing through National Technology Leasing is one of the best business decisions you can make.
Protect against Obsolescence
Business and financial advisors encourage matching the productive life of an asset with the liability associated with that asset’s acquisition. By matching the lease term to the useful life of the equipment, a company can match their payment obligations to the period in which the equipment will produce revenues (instead of paying for the equipment "up front" and mismatching the lump sum payment for the equipment with the revenue stream generated by that equipment). As a business owner, you must protect against the rate of high technology medical equipment depreciation. We can work with any industry, including dentistry,ophthalmology, aesthetic and medical surgery, and general medical and healthcare. Leasing with our company gives you the opportunity to capitalize on the depreciation of your high-end equipment.
Contact National Technology Leasing Today
Based on your equipment lease vs. equipment buy analysis, qualitative factors of leasing from our company, and the tax benefits gained from high technology and medical equipment depreciation, leasing new equipment is one of the best ways to expand your business and purchase new machinery and supplies. Contact National Technology Leasing today and get your business growing in the right direction.