Advantages of Equipment Leasing

Is equipment leasing better than paying cash for business equipment? Here at Balboa Capital, we know there is no right or wrong answer to this question, as every business owner has their own way of doing things. If you own a business and need new or updated equipment, it is important to know the advantages of equipment leasing. That way you can make the best decision for your company’s needs. We developed this list of six key benefits of leasing equipment.

Reduced Cash Outlay

Of all the advantages of equipment leasing, Balboa Capital has this listed at number one. That is because saving cash is what business owners and CFOs appreciate most. Leasing saves your working capital that would otherwise be used if you were to pay cash for your equipment. With a Balboa Capital equipment lease, you make monthly payments over a set term length. This lets you save your capital for business expenses.

Easier Approval Process

With a Balboa Capital equipment lease, you can get approved without requirements like collateral, a high credit score, or a large down payment. Plus, you won’t need to fill out a bunch of paperwork or provide a business plan. You can apply for a Balboa Capital lease online, and we will provide you with an instant credit decision. In short, an equipment lease is much easier to get approved than a bank loan.

Potential Tax Deductions

If the equipment you lease qualifies for the Section 179 tax deduction, you might be able to expense all or portions of the cost. The current Section 179 tax deduction limit is $500,000. Check with your accountant to find out if the equipment you want to get is eligible. Balboa Capital has a free Section 179 tax calculator that gives you an instant estimate of how much you can save when you lease equipment.

No Outdated Equipment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, a Balboa Capital lease might be the best option.

Healthy 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 expenses requires solid credit, and having an open credit line allows you to respond immediately in a time of need. Equipment leasing with Balboa Capital lets you keep your business credit line open and strengthens 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 some of the main advantages of equipment leasing, it’s time to get started with Balboa Capital. Submit your equipment lease application through our website today. It takes just a few minutes, and you will get an instant credit decision. We can even provide you with same-day funding.