"It’s almost always a good idea to seek lease financing for your business equipment. Don’t tie up any of your available working capital by paying cash for equipment if financing is available. It’s much easier to get a collateral based equipment lease than it is to get a non collateral based working capital loan. Some of the reasons why roughly eighty percent of U.S. businesses lease their business equipment are that leases generally don’t require a down payment, there are significant tax benefits, and that the payments are fixed and don’t fluctuate when like they would if you used a bank line of credit."
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The whole article is kind of a puff piece, an advertisement for a leasing company, though, like in many articles, they make very valid points. The last thing a growing company should do to their working capital is spend it on a piece of equipment that they could easily finance, thus saving valuable capital. No matter the manner of equipment, no matter the industry, be it medical equipment, farm equipment, heavy equipment, construction equipment, recording equipment, audio/visual equipment, HD equipment, broadcasting equipment, even bottling equipment. A basic rule of business is to keep costs low and to increase profits. Leasing your business equipment allows you exactly that option.
~AP
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