8 Ways Businesses Benefit from Equipment Leasing

Every business owner has their own challenges, goals and circumstances to consider when it comes to acquiring new equipment. There are many advantages to equipment leasing over purchasing that business owners can leverage to preserve cash flow and invest in their growth. Here, we’ll break down the top eight reasons why your business should consider equipment leasing. 

1. Smaller Out-of-Pocket Costs 

Many business owners struggle with the high cost of purchasing equipment outright, especially a new business trying to gain a competitive edge in their industry . However, with equipment leasing, you can make smaller monthly payments that fit more easily into your budget. This type of financing also gives you the ability to get the equipment you need without having to seek out a large loan or use valuable company resources. Arbutus Capital allows lessees to only make the first rental payment in advance — an uncommon perk in our industry.

2. Tax Benefits 

Your business may be able to take advantage of the tax benefits associated with equipment leasing. Depending on the type of lease, you may be able to deduct certain payments as business expenses rather than having to depreciate them over time. Talk to an accountant for more information about potential tax advantages from equipment leasing. 

3. Keep Up with Technology 

Another advantage of equipment leasing is that it lets you stay up-to-date with the latest technology. You can upgrade to the latest model or switch to a different type of equipment without having to spend a fortune on buying new items every few years. This helps your business stay competitive and be a leader in your industry without crippling your working capital.

4. Budget Predictability 

Equipment leasing makes budget forecasting much simpler because you know exactly how much you’ll be spending each month on equipment lease payments. This helps you plan for other expenses and keep a more accurate track of your company’s finances. 

5. Flexible Leasing Options 

Equipment leasing offers flexible payment terms that can be tailored to fit the specific needs of your business. You can choose shorter or longer-term options depending on how much time you need to pay off the lease. Arbutus Capital can often provide financing with a small down payment, and typically write the end-of-term purchase options as either $10, or 10% of the original purchase price. Our lease terms usually range from 24 to 60 months, but we are able to be flexible with our customers as needed.  

6. Keep Credit Lines Open 

By leasing equipment, you don’t have to tie up your credit lines or bank account with a large purchase. This leaves more of your resources available for other opportunities, such as investing in your growth or hiring new staff, and makes it easier to access emergency funds if needed. 

You can also lease back equipment and assets you already own to Arbutus Capital if you need to generate quick working capital. We’ll create a lease contract at a mutually acceptable term, creating a great solution to short or long-term cash crunches that your business may experience, while enjoying the tax benefits of leasing write-offs for your financials. 

7. No Risk of Depreciation 

Equipment depreciates in value over time, which can be a huge loss to your business. But with equipment leasing, you don’t have to worry about this because you can return the equipment at the end of the lease and not have to take a hit on its value. 

Many business owners take advantage of our end of the term Purchase Option on their lease so they don’t disrupt their workflow, and because the equipment is often worth more than the final Purchase Option amount. If the equipment requires an upgrade, businesses will often buy out their equipment using the Purchase Option, and then trade their existing equipment into a dealer to get new or different equipment. 

8. Easier Application Process 

The process for applying for equipment leasing is usually much easier and faster than other types of financing. Additionally, Arbutus Capital can offer rates based on your company’s credit score or payment history, and even work with you if you don’t have a great credit score, thereby making it even simpler to get the equipment you need right away. 

Equipment leasing can provide many benefits to businesses looking to save money while still getting necessary equipment and staying up-to-date with the latest technologies. By working with a trusted partner like Arbutus Capital who offers attractive leasing deals and flexible payment terms, you can take advantage of the best possible equipment financing options for your business. With careful analysis and attention to detail, businesses can quickly reap the rewards of equipment leasing. 

At Arbutus Capital, we understand that managing business finances is a complex task. We have over 40 years of experience working with businesses in a variety of industries that require an array of equipment. We can help you explore your options and find the best way to manage your finances so you can get the most out of your business’s resources. Contact us today to learn more about how we can help you succeed.