on Wednesday, August 24, 2016
8 Ways Leasing Can Help Build Your Construction Business
Do you want to lower your monthly equipment costs? Do you have a specialized, short-term job you need special equipment for? Are you just looking for a way to run with the latest capabilities? Leasing may be the right choice for you when it comes to acquiring equipment for your jobsites. Leasing is a low-cost, low-risk alternative to purchasing your equipment or taking on an installment loan. John Deere Financial gives us eight of the top reasons why:
1. Helps free up cash- The low initial cash outlay associated with leasing compared to an outright purchase or installment loan allows you to hold on to money for other business needs.
2. Lowers monthly payments- Low oayments cna help you better manage your business cash flow requirements and budgetary needs.
3. Gives you access to the latest technology- Leasing lets you rotate newer machinery so you can continually take advantage of more capable, efficient and advanced equipment technology
4. Provides flexible payment options- Convenient payment schedules give you the choice of monthly, quarterly, semi-annual or annual payments. Skip payments are also available from John Deere Financial with James River Equipment.
5. Allows you to schedule new equipment fast- With its defined terms at James River Equipment, leasing cna help you plan for new equipment well in advance.
6. Improves your bonding capacity- Leased equipment does not appear on your balance sheet as an asset or a liability. Tihs can ve very important if you have future acquisition plans because it strengthens financial ratios. Consult your tax advisor for details on how this can help you.
7. Lowers your taxes on equipment use- In most states, instead of paying sales tax on the full purchase price, you pay only a use tax on the monthly lease payment. If you eventually exercise the purchase options, you've deferred your sales tax until the end of the term.
8. Maximizes your uptime- Newer leased equipment means less downtime and fewer repairs.
The benefits of leasing could be just what you need to grow your business. Call James River Equipment today to decide if leasing is right for you.