Tips on Leasing Equipment

>> Keep in mind that leasing equipment instead of buying it can help you manage your company without tying up funds needed for working capital. You can use the equipment to make money while you are paying for the lease.

>> Use leasing to help you meet objectives that might otherwise be out of reach. Instead of giving a deserving employee a raise, one cash-strapped entrepreneur instead more cheaply leased a new car for the employee.

>> Be aware that monthly payments are often tax deductible and may offer a larger tax break than you would get if the equipment were depreciated.

>> Do the math. Leasing is a form of borrowing, and usually the interest rate is higher than that of a commercial bank.
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>> To find a lessor, look in the Yellow Pages under “Equipment Leasing” or “Leasing Services.” Some banks offer leasing services.