Leasing is a quick and easy way to obtain equipment with little or no money down. Since companies have different needs and different cash flows patterns, they need financing that’s flexible enough to match those needs.

For example, start-up businesses and fast growing companies usually have tight cash flow and limited bank credit lines. Mature companies may need to comply with existing debt covenants. Your specific business situation will help define the best structure for your lease.

Here are just a few of the many potential benefits of leasing:

Keep Up with the Latest Technology

Let’s face it — all businesses today require significant investments in technology. At times, this equipment may be prohibitively expensive. Other times, you just may not want to part with all the cash up front. Leasing can help. Leasing helps you avoid the risk of buying and owning technology that will be made obsolete in a relatively short period of time. The pace of technological change increases daily. By leasing your technology hardware and software, you don’t take the risk of it becoming obsolete, we do.

Conserve Your Capital

Traditional bank financing usually requires more capital outlay upfront than leasing. Leasing generally requires from one to two advance payments, while bank financing may require a down payment of up to 20%. The capital you save upfront can then be invested back into your business for a greater return to you. Bank financing payments may also increase if interest rates rise, while lease payments are fixed for the term of the lease.

Tax Benefits

Section 179 of the Internal Revenue Code provides a valuable deduction on equipment purchases for business owners. The provisions of Internal Revenue Code Section 179 allow a sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased. The maximum section 179 deduction has recently increased to $250,000 for equipment you placed in service. Tangible personal property such as machinery, computers, off-the-shelf computer software, office equipment and some vehicles can be expensed if installed by December 31st. Equipment placed in service on the last day of the taxable year can still be fully expensed and does not need to be prorated.

Improve Cash Flow Budgeting

Leasing can better allow cash forecasting and budgeting because the amount and number of payments in a lease are fixed and definite. This helps to eliminate uncertainty about the future cost of equipment.

100% Financing

Leasing often allows you to finance your entire equipment investment including software, installation, training, maintenance and even developmental costs. This allows your business to spread the entire cost over the life of the lease.

Design the Lease That’s Right for Your Business

The most important benefit of working with MacArthur Business Credit is that it allows you to work with a specialist that will help you determine the right structure and program for your particular situation. As you can see, leasing is flexible and offers a number of attractive business benefits. We will work with you to make sure you get the lease that’s right for you and your business.