Can a Lease Buyback Help My Business?
If your business relies upon the usage of expensive equipment, then a lot of the company’s capital probably goes towards payments of this equipment. This can be a problem for new companies that are struggling to make ends meet. If you still need access to important equipment but you’re looking for a quick influx of cash, consider opting for equipment lease buyback.
Understanding Lease Buyback
Many people have never heard of equipment lease buyback. This opportunity can be extremely helpful for growing businesses that supply a service to customers, like construction companies or gyms. With an equipment lease buyback, you’ll sell the equipment that your company needs to a leasing company. After the equipment is sold for a fair price and you have cash in hand, you’ll be able to work with the leasing company to lease the equipment that you just sold. With this option, you’ll be able to have access to all of the equipment you need for a low monthly price, and you’ll gain the cash that you need for other business expenses.
Save Money on Repairs
Equipment lease buyback has several appealing advantages to business owners. Instead of having to spend your own money on maintenance and repairs, the leasing company will now have full responsibility of fixing equipment when there’s an issue. While this is the case for most leasing contracts, be sure to check with your leasing company before assuming that they will cover the costs of repairs and replacement. Most companies do offer this advantage, so you’ll likely be able to find a leasing company that will provide free repairs to the equipment.
Write Offs On Taxes
When it’s time to file taxes, leasing equipment can often be written off as a business expense, so you’ll end up saving money. The ability to completely write off leased equipment can be a big advantage for small businesses, as every dollar saved adds up.
Gain Access to Upgrades
By leasing equipment instead of purchasing, you’ll likely be able to opt for upgrades in the future. Purchasing new equipment every few years can be impossible for many small businesses, so leasing is often the best option. Before signing a contract, make sure to speak with the leasing company to see how often upgrades are offered.
Purchasing equipment can often be devastating to a small business’s budget. Instead of keeping the equipment that you’ve bought long term, consider opting for a lease buyback to preserve cash and free up the budget.