Did you know that leasing provides certain tax benefits that you do not get when you use other methods of payment?

For Example:

Tax considerations : There are significant differences in tax treatment between leasing and buying your equipment.  Since leasing is viewed as an operational cost to your business, the IRS allows you to expense each payment in full (Principal & Interest) from your bottom line. This provides a consistent tax break for your company throughout the life of the lease. Furthermore, by customizing lease payments, you can match expenses with anticipated income from year to year.

Eliminate equipment obsolescence – As equipment ages it breaks down more often, and as a result it, reduces productivity, and costs more to repair, thus reducing profits. Therefore, in order to remain competitive in your respective industry you have to purchase the latest technology, which can get very expensive. However, leasing offers a means of always being up to date in your market without straining to your pocketbook.

Expected length of equipment use - Businesses often need specialized equipment to deliver time specific projects.  When these projects are completed, the project specific equipment is no longer needed.  Leasing is ideal for these short-term situations.

All-in-cost of leasing package - certain computerized or heavy equipment require specialized installation, training of operators and maintenance staff, and other services that add to the cost of the equipment.  Leases can be structured to include all these costs and amortize them over the life of the lease, thus eliminating out-of-pocket cash expenditures.

Debt covenant management - your short and long-term debt covenants with banks may place a ceiling on the total debt your business can incur, thus preventing additional debt financed equipment purchases, thus, preventing business growth.  Leasing solves this problem.

Opes Financial is also able to provide SBA loans to California based businesses. Please contact an Opes Financial representative for details.