Why Business Owners Should Consider Leasing Equipment in an Uncertain Economy
Did you know that 85% of small businesses plan to invest in new equipment in 2025? But surprisingly, 41% will rely on credit cards with potential high interest rates and only 27% plan to use leasing options.
Many business owners in Sonoma County and throughout the Western US don’t even know that leasing equipment is an option for them! At Hansel Leasing, we believe cash flow is king. Leasing large ticket items for your business is the tool that keeps your cash where it belongs – in your business!
We provide the opportunity to run your business the way you need to run it and conserve your cash outlays. This is a powerful tool for any business owner, especially during an uncertain economy! Leasing equipment is beneficial for businesses as it allows for:
Lower upfront costs
Improved cash flow
Potential tax advantages
Flexibility to upgrade equipment as needed
Here’s a further explanation of why leasing equipment is a smart move for business owners during an economic upheaval (or really anytime):
-
Leasing often requires minimal or no down payment, freeing up capital that can be used for other crucial business operations, like hiring or investing in other areas.
-
Leasing typically involves fixed monthly payments, making it easier to budget and plan ahead, which is especially helpful during economic uncertainty.
-
Lease payments can be tax-deductible as a business expense, potentially reducing your overall taxable income.
-
Leasing allows businesses to upgrade to newer, more efficient equipment as needed, helping them remain competitive and avoid obsolescence.
-
Some leasing agreements include maintenance and repairs, which can reduce the financial burden on the business.
-
Leasing preserves capital by avoiding large upfront purchases, allowing businesses to allocate resources to other priorities during economic instability.
-
Leasing can act as a hedge against market volatility and interest rate fluctuations, providing a more predictable cost structure.