When you lease construction equipment, you don't have to worry about the costs and can keep your cash on hand. Leasing can be used for any construction project, no matter how big or small. Plus, the payments you make can be used to lower your tax bill.
As a decision-maker in the construction industry, it's important to think about all the ways to buy equipment, especially in today's fluid market.
When you lease construction equipment, you don't have to worry about the costs of buying it, and you can keep your cash on hand. No matter how big or small your project is, the banks that specialise in this type of product will always have leasing options for you. Also, payments made under an operating lease can be used to lower your taxes.
An ELA survey found that 65% of the top businesses lease their equipment. Most of these businesses lease because it helps them keep track of their budgets, brings in more cash, and gives them access to the newest equipment.
As businesses get ready to compete and grow in the new century, many are looking for new, tried-and-true ways to finance their equipment. And for more and more people in construction, the choice is clear: they should lease equipment.
Leasing construction equipment has some very important tax benefits if it is set up right and is a "true" lease. Since the payments can be seen as rent, the whole amount can be written off as an expense. At the end of the year, you'd just add up all of your payments and write them off as a single expense. This is a much faster way to write off money than writing off interest costs or depreciation.
Most leases don't have to be listed as a liability on your financial statement because they aren't set in stone. Instead, they can be listed as a footnote. This makes sure that your financial statement doesn't get too full of debt, which is important if your bank lines require you to keep certain ratios.
But the biggest benefit is that you can make the most money with the least amount of information. With a single page application, you can get up to about $100,000!
Leasing construction equipment makes sense for many people who work in the field. Even more so when you think about the good things: Leasing lets you keep a flexible machine stock. If your work changes, so can your machines.
It gives you a plan for when to replace equipment, so you can use newer, more up-to-date equipment and have less downtime. It usually requires less money up front, and the monthly payments for leasing construction equipment are usually lower than those for instalment payments. This frees up cash and makes your assets more liquid. And it doesn't force you to buy something for a long time.
So, any business leader who wants to make the most of their money should look into the benefits of leasing equipment.
