4 Reasons Why Dallas Companies Lease Equipment
Dallas, TX is home to businesses spanning every industry. From niche retail shops on up to manufacturers, oil and gas companies, heavy construction, freight, and more. The two things every business in Dallas in common are the need for equipment and the desire to lower expenses. Because of this, many local businesses ranging from small startups to large corporations lease equipment.
1. Leasing equipment is a manageable expense
For small businesses and operations that use specialized or large pieces of machinery, the initial cash outlay can place a major strain on finances. Leasing agreements give Dallas area businesses access to the equipment they need with manageable monthly payments. Instead of trying to “make up” capital to recover from a huge purchase, businesses can calculate a small payment into their monthly budget right alongside utilities and rent. Additionally, leasing is not a loan, so there is no debt placed on the books.
2. Get exactly what you want
Far too frequently, we see businesses in Dallas settling for the equipment they can afford, or older pieces that can actually lower productivity. Leasing agreements allow businesses to pick and choose exactly what they need and want to optimize function and productivity at their facilities, out on a job site, or in the office. Leasing agreements aren’t just for one type of equipment either. Tech companies, medical practices, law offices, manufacturers, trucking companies, construction businesses, and every business in between can lease the equipment they need.
If you regularly use your equipment or work in a field dependent on technological advances, upgrades are necessary to remain competitive. Purchased equipment can be traded in or sold at after-market values to recoup a fraction of the initial cost, and that still leaves the difference in the price of the new equipment. Leasing agreements offer opportunities for Dallas area businesses to upgrade to newer equipment models as they become available. Depending on the type of agreement and equipment being leased, there are also options for staff training and maintenance which can be rolled into the monthly bill.
4. Big tax benefits
Some Dallas businesses are apprehensive about leasing equipment because there is no “equity value.” While there is no equity, because the equipment is leased instead of owned, there are still tax benefits. The IRS allows businesses to claim equipment leasing payment as deductions. Consult with your accountant or tax preparation specialist on the latest maximum, which hovers around $500,000. Best of all, Dallas businesses that lease equipment do not have to worry about calculating depreciation, which lowers the amount of deductions claimed.
At Caedmon Commercial Capital, we specialize in equipment leasing and financing for businesses of all types throughout Dallas, TX. Contact our offices today to learn more.