Benefits of Leasing Equipment
Many companies regularly consider leasing as an option when acquiring new light- and medium-duty vehicles but don’t always think of leasing when they need to acquire new equipment.
Equipment leasing offers similar benefits to fleet leasing, but also benefits the typical fleet lessee may not be aware of.
Leasing equipment allows your company to preserve capital, adding that purchasing equipment in a lump sum ties up bank credit lines that could be used to invest in other areas of the business.
A stronger balance sheet is another benefit, similar to an operating lease for fleet, when companies lease their equipment, it does not appear on the assets or liabilities columns of their balance sheets. Instead, it is listed as an operating expense on their income statements.
Another issue to contend with involves the equipment’s future value and its potential technological obsolescence. Leasing allows the owner to simply return the equipment at the end of the lease term and update with newer technology.