All businesses are constantly making purchasing decisions. Whether it is new computers or office equipment, machinery for a factory or a fitting out a retail outlet, there are so many buying decisions that need to be made.
Many business owners do not realise that many items could actually be leased instead of bought.
Did you know you could lease your software and additional upgrades? Or that your total office fit out could be leased and paid in monthly installments instead of a large lump sum?
There are so many items that could be leased and there are many benefits to leasing which need to be considered.
Some of these advantages include:
Upgrade as technology changes:
If you find that you need to upgrade to newer technology, you can easily upgrade your equipment if you are leasing. If you had bought the equipment or software you would be left owning it and needing to offload or dispose of it. It is so much easier when you don’t have to worry about the equipment at the end of its useful life. You are not left holding obsolete items and LeaseChoice ensures the disposal of your item in an environmentally friendly manner
Easy monthly payments:
Instead of blowing a hole in your cash flow with a lump sum payment, when you lease an item the amount is paid monthly over the term of the lease. This is especially helpful if you have lumpy cash flow cycles.
100% tax deductible expense:
Did you know that your monthly repayments are a tax deductible expense? The amount does not come out of your capital budget and hence it does not affect your balance sheet
Lease Vs buy analysis:
LeaseChoice has been offering business equipment leasing to Australian companies for over 10 years and has a team of excellent advisers who can assist in your financing decision.
LeaseChoice has developed a sophisticated lease vs buy analysis to help you decide what is best for your business.
This analysis will also help you decide what sort of lease is best for your business. The types of leases that exist include:
- Operating lease
- Finance lease
- Commercial hire purchase (mainly used for motor vehicles)