Small Business Leases

Small business leases are ideal ways for small business owners to obtain the equipment that they need to run their operations. Because you are not actually buying the equipment you need, when the term of your lease is up, you can exchange the old equipment and enter into another lease agreement to acquire newer equipment that has all of the latest features. 

Benefits of Leasing

When you lease your new equipment, you can deduct the cost of the lease expense on your income taxes. When your lease is up, if the latest equipment available is a significant upgrade, you can then consider purchasing it. You many not have been able to do this had you purchased your original equipment, instead of leasing it.

Credit Lines

One thing to watch out for is that your lender reduces your credit line by the amount of equipment you are leasing. For example, if you have a $20,000 credit line and the equipment you lease costs $5,000, your available credit is now only $15,000.

If you needed that extra amount to grow your business, you can check with a different lending source to establish another credit line.