7 Benefits of Businesses Leasing Equipment and Not Paying Cash

Why You Should NOT Pay Cash For Your Business Equipment

 

For business, maintaining a positive cash flow is absolutely a necessity. In fact, without positive cash flow, a business will not survive economic swings. In fact, current studies have shown that it is more beneficial for a business to lease their equipment rather than invest their cash (which reduces liquidity). So, we’ve put together the best reasons to lease equipment rather than buying the equipment.

 

  1. Flexibility

As your business grows, so does your needs. That is why leasing equipment is the best option. When you lease equipment, you conserve cash flow which allows you to better manage any unexpected changes in the business. If you need to acquire more equipment it can be done with a low monthly payment.

 

  1. Newest Technology

This ties in with flexibility as you are tied down to old, broken down equipment. Equipment is constantly improving to provide the fastest, most efficient experience and with leasing, you can enjoy/reap those same benefits. By obtaining new equipment for a low monthly payment and little out of pocket expense you have the ability to more easily upgrade to new technology.

 

Section 179 Equipment Lease Example Video

Section 179 Example Video Here is an example of a business owner using tax code section 179. Steve is the…

Read More
Software Financing

 

  1. Asset Management

No one likes to assume risk of failure but that’s exactly what you’re doing whenever you choose to purchase equipment outright. Whenever you lease business equipment, the lessor ends up managing all the risk.

 

  1. 100% Financing

Whenever you can, you should always look for ways to maintain a positive cash balance. Leasing allows you to do this as, most of the time, you can finance your business equipment 100% without any down payment.

How does Equipment Sale Leaseback Work?

What is an Equipment Sale Leaseback and How Does it work?  Equipment sale and leaseback refers to a funding transaction that involves a business…

Read More
Merchant Advance

 

  1. Capital Preservation

Tying in with 100% financing is capital preservation. Again, having cash on hand is much better than not as your business is much more flexible, without being debt ridden. You can plan better, make better decisions and be ahead of the competition when you have positive cash flow.

 

  1. Improved Expense Planning

Knowing your budget helps you make safe, sound decisions regarding your business. Instead of losing business flexibility, leasing business equipment allows you to reduce budget fluctuations, allowing you to stay competitive in your industry.

 

  1. Tax Benefits

And finally, saving money is always preferred. For those who are leasing business equipment, they may be eligible for tax deductions on their leased payments.

 

 

So, there you have it. Seven reasons why leasing business equipment is the better option for your business no matter what size company you are running.

Schedule a Call with a Business Advisor

Have Questions about our Programs? Schedule a call with a Business Advisor to see how BNC Finance can be a resource to your business.

BNC Finance Blog

Get Financing Blog

5 reasons you should replace your equipment before it breaks

5 Reasons you should replace equipment before it breaks

5 Reasons you should replace business equipment before it breaks Using equipment to the end of its life cycle has…

Read More
How does a merchant cash advance loan work?

How Does a Merchant Cash Advance Loan Work? (MCA)

What is a Merchant Cash Advance Loan?  Tired of going through the hurdles of securing a bank loan for your…

Read More
reasons to lease equipment even if you have the cash

5 Reasons to Lease or Finance Equipment even if you have the Cash

I am sure you have heard that old saying: “I don’t buy unless I can afford to pay for it”?…

Read More
Dental Equipment Financing

Dental Equipment Financing Program by BNC Finance

Dental Equipment Financing and Leasing You pick the Dental Equipment you need and we will help you finance it. Contact BNC…

Read More
Commercial Drone Financing

Business Drone Financing allowing many commercial sectors to increase productivity while reducing expenses.

Commercial Drones for Construction The architects and people in the construction sector are making the best use of drones. Drones…

Read More
Equipment Sale Leaseback

How does Equipment Sale Leaseback Work?

What is an Equipment Sale Leaseback and How Does it work?  Equipment sale and leaseback refers to a funding transaction that involves a business…

Read More

Offer Financing Blog

what is tax code 179

What is Tax Code Section 179

What is Tax Code Section 179 Section 179 of the IRS tax code allows businesses to deduct the full purchase…

Read More
Equipment Leasing Tax Code 179

Section 179 Equipment Lease Example Video

Section 179 Example Video Here is an example of a business owner using tax code section 179. Steve is the…

Read More
Social Media Tips to Sell Heavy Equipment (1)

Social Media Tips to Sell Heavy Equipment

Are you a company selling heavy equipment? If so, you have probably given a lot of thought to your marketing…

Read More
Increase Business Revenue through Strategic Partnerships

How to Increase Business Revenue through Strategic Partnerships

Forming Strategic partnerships with businesses provides mutual benefits and equips businesses to offer customers more value added options. Statistics have…

Read More
Offer Equipment Financing

Ways to Increase Equipment Sales Through Strategic Partnerships

As businesses grow and expand, owners are learning to use their money more carefully, stretching the dollar as far as…

Read More

Close More Sales – Offer as Low as Monthly Payment Calculator

Have you ever sent out a quote & never heard back from the client? Not everyone will tell you your…

Read More

Industry Related Blog

Auto Repair Shop Equipment Financing

Automotive Repair Shop Equipment Financing Program

Equipment Financing for Auto Repair Shops: A Comprehensive Guide As an auto repair shop owner, you understand the necessity of…

Read More
Catering and Event Equipment Financing and Leasing

Event Rental Equipment Financing Program

Event Rental Equipment Financing and Leasing by BNC Finance The event planning industry is dynamic and complex. It requires businesses…

Read More
Drone Technology for Excavation Contractors

How Excavation Contractors can benefit from Drone Technology

Excavation contractors can implement drone technology in several ways to improve their operations and increase efficiency. Some of the ways…

Read More
Drone Uses in Agriculture

Drone Uses and Benefits in Agriculture

Technological advancements are bringing a revolution in every field of life, and agriculture is also a field that has been dramatically…

Read More
Photography and Videography Equipment Financing

Photography and Videography Equipment Financing

You pick the Photography and Videography Equipment you need and we will help you finance it. Contact BNC for Photography and…

Read More
Dental Equipment Financing

Dental Equipment Financing Program by BNC Finance

Dental Equipment Financing and Leasing You pick the Dental Equipment you need and we will help you finance it. Contact BNC…

Read More