Benefits of Equipment Leasing

Is equipment leasing better than buying business equipment outright? Here at Balboa Capital, we know there is no right or wrong answer to this question, as every business has its own way of doing things. If you own a small or medium-sized business and want to acquire new equipment, it’s important to know some of the key advantages of equipment leasing. That way you can make the best decision for your business’ needs.

Save Cash

Of all the advantages of equipment leasing, Balboa Capital has this listed at number one. That’s because saving cash is what business owners and CFOs appreciate most. Equipment financing saves your working capital that would otherwise be used if you were to pay cash for your equipment. With an equipment lease program, which is designed around your specific equipment needs and budget, you make affordable monthly payments over time. This allows you to save your money for business expenses, expansion and more. This Balboa Capital video explains the advantages of equipment leasing.


Section 179 Tax Benefits

Equipment lease financing presents your business with some fantastic tax benefits. The IRS allows for lease payments to be fully deductible if your business uses the leased equipment. Balboa Capital has a free Section 179 tax calculator that gives you an instant estimate of how much you can save when you finance equipment.

Avoid Outdated Equipment

Depending on the type of business you own, equipment leasing may help you stay on top of the latest advances in equipment and technology. Being able to make upgrades to newer equipment when your short-term lease is up can give your company a competitive edge. When you buy equipment, you are stuck with it unless you can sell it. So, if your business uses equipment that is periodically updated with better technology and capabilities, leasing might be the best option.

Preserve Business Credit

You are well aware of how important it is to keep your business credit line healthy… and open. Getting funding for business expansion, staffing and other operational expenses requires solid credit, and having an open credit line allows you to respond immediately in a time of need. Equipment leasing lets you keep your business credit line open and strengthen the cash flow of your business.

Better Balance Sheets

A more attractive balance sheet can be yours thanks to equipment leasing. That’s because your monthly lease payment is viewed as a business expense instead of a liability or long-term debt. As you know, having little or no debt on your company’s financial statements is a huge benefit when it comes time to secure business funding

Now that you know the advantages of equipment leasing, it’s time to get started with Balboa Capital. Submit your equipment lease application safely and securely through our website today.