5 Reasons to Consider Equipment Leasing & Why It Makes Sense

Are you a business owner looking for ways to reduce expenses and increase profits? Equipment leasing could be just the thing you need! Arbutus Capital provides leasing services for businesses in all industries, with tailored solutions that can help grow your business and boost your bottom line. In this post, we’ll explore five reasons why equipment leasing is a smart choice and how it can make sense financially. Let’s get started!

1. Access to Latest Equipment

As a business owner, having the right equipment to get the job done is crucial. However, purchasing equipment upfront can be a daunting task, especially if it requires a large sum of money. But with an equipment leasing agreement, businesses can gain access to the equipment they need without breaking the bank. 

These agreements allow businesses to lease equipment for a fixed period term. During this period, businesses can use the equipment as if it’s their own, but are also able to upgrade to newer equipment when the lease is up, ensuring they always have the latest and greatest equipment at their disposal. You definitely don’t have to worry about the burden of selling or disposing of outdated equipment, but can choose to purchase the equipment at the end of the lease term if you’d like. Overall, an equipment leasing agreement is an excellent way for businesses to stay competitive in today's fast-paced market without having to invest a large sum upfront.

2. Improved Cash Flow & Cost Savings 

In the fast-paced world of business, flexibility and adaptability are essential traits. One way to achieve these traits is by leasing equipment instead of purchasing it outright. Equipment leasing provides significant cost savings, particularly in the short term, as businesses can avoid large capital expenditures. Moreover, companies can upgrade equipment more frequently without having to worry about depreciating assets. Conserving capital and cash flow allows businesses to focus on their growth in other areas, rather than spending it all on equipment. 

Equipment leasing can be a wise choice for businesses—especially start-ups—that need new machinery or technology but do not have the capital to purchase it outright, thereby allowing companies to acquire the equipment they need without committing a large amount of cash upfront. 

3. Tax Deductions

Leases and loans are treated very differently by the Canada Revenue Agency. Lease payments are often tax-deductible as a business expense, which can further reduce a company's expenses. Talk to your accountant about any potential tax deductions you can take advantage of!

Overall, equipment leasing offers flexibility, cost savings, and tax advantages that make it a smart choice for businesses looking to stay ahead of the competition. 

4. Better Asset Management

Leasing equipment can help you manage your assets better and keep track of your equipment more easily, which can help you avoid a surplus in inventory. Leasing equipment allows businesses to focus on their core competencies while leaving equipment procurement and management to expert third-party vendors like Arbutus Capital.

5. Improve Your Business Outcomes

Equipment leasing has been a game-changer for businesses across various industries, providing a flexible and cost-effective solution to acquiring necessary assets. In the construction industry, companies have been able to expand their services and meet high demand by leasing equipment instead of purchasing outright. Even small businesses have embraced leasing, allowing them to acquire essential equipment without the financial burden of outright purchase. Overall, leasing equipment has become a popular option for businesses looking to grow and stay competitive in their respective industries.

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In conclusion, leasing can be a practical option for businesses looking to save money and stay up-to-date with the newest equipment. Arbutus Capital provides equipment leasing services to a wide variety of industries, enabling them to obtain the necessary equipment without having to invest large sums of money upfront. With numerous benefits such as cost savings and tax deductions, it's clear that equipment leasing makes sense for businesses in need of new machinery or technology. Whether you need to lease construction equipment, medical devices or transportation machinery, Arbutus Capital has you covered. We are dedicated to offering exceptional customer service and work hard to ensure that our clients get financing solutions that work for their unique circumstances. 

Don't hesitate to reach out today and gain access to the equipment your business needs for success!