Top Ten Reasons to Lease Equipment

By New Tech Machinery.

New Tech Machinery helps customers with financing.

Manufacturers are working overtime to help contractors keep business moving.  During these difficult times, New Tech Machinery is offering a number of ways to help contractors get the equipment they need.  One way is looking at creative financing like leasing and special programs not to mention being aware of tax deductions.

Here are ten reasons why leasing may work for you:

1. Leasing improves cash flow
   Leasing provides 100% financing with no down payment. Leasing payments are a fraction of the total purchase price and can be a pre-tax expense. Lease payments can even be scheduled to coincide with a company’s seasonal cash flow.

2. Leasing provides other credit sources
   Unlike a capital expenditure, leasing keeps a company’s credit lines available to meet other needs.

3. Leasing avoids risk of usage or technological obsolescence
   It is common for a company’s usage of new equipment to evolve beyond the equipment’s capabilities. In the meantime, new technology continues to deliver higher quality and new capabilities. In both cases, leasing protects you by allowing upgrades and equipment add-ons. Leasing conserves operating capital.

4. Leasing frees up a company’s working capital for investments or other business expenses

5. Leasing offers fixed-rate financing
   Fixed payments improve a company’s ability to budget and forecast.

6. Leasing allows choice of equipment
   Companies can specify the equipment they need and the source – as if purchasing it directly. All normal manufacturers’ warranties are passed through to them.

7. Leasing helps hedge against inflation
   Low, fixed-rate pricing protects against inflation and allows current acquisition with tomorrow’s dollars.

8. Leasing makes more equipment available
   Because the monthly lease payment is a small portion of the total cost of the equipment, leasing allows a greater amount of equipment for a given dollar allocation.

9. Leasing provides flexibility
   Flexible end-of-lease options let a company purchase, refinance, upgrade or return the equipment.

10. Leasing offers tax advantages
    With operating leases, tax laws allow the deduction of lease payments as a business expense. Plus, there is no time wasted with depreciation schedules or Alternative Minimum Tax (AMT) issues.

Also, through their partnership with Apex Capital New Tech is pleased to offer two new payment structures that will help you keep cash flow low and move your business forward at the same time:

1. Option 1 - The first 6 months at $99.00 a month with only $99.00 down. Full payments will start in the Fourth Quarter. 

2. Option 2 - Reduced monthly payments for the first 12 months!

Finally, be sure to take advantage of the Section 179 tax deductions now. Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. If you buy or lease a piece of qualifying equipment, you can deduct the full purchase price from your gross income. The total amount written off can’t exceed $1,040,000 in 2020, and the spending cap on equipment purchases can’t exceed $2,590,000 in 2020.  Check out our page on Section 179 for more information including tax calculator and fact sheet.

Please contact Michelle Sherman at 201-362-4052 or msherman@financewithapex.com. More financing and leasing information for our portable rollforming machines can be found on the New Tech website.