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This Week's Tip

Raising capital for a new business venture is generally a challenge and a business owner should always evaluate equipment leasing for furniture, computers, copiers, manufacturing equipment, vehicles, and other business equipment. Equipment leasing can offer many advantages - 100% financing (or preserves working capital); can permit a better grade of equipment than a purchase; fixed interest rate; terms from 2 to 7 years; lower documentation fees; easy application and approval process; various end-of-term options; minimizes risk and obsolescence; ability to add on or upgrade equipment after or during the lease; tax savings in some states; cost of leasing can often a larger tax deduction than a depreciation expense; often does not effect your business line of credit; and may not increase your balance sheet liabilities. Lease rates vary based on the size of the transaction, credit rating, and other factors; however, the leasing industry, like the banking industry, includes a large mix of companies with varying interests in customers and lease transactions which means most companies can find equipment lease financing to suit their needs.