Even if you do have the cash to buy a Pix2o video display outright, you still might want to lease it. There are many reasons why:
- Conservation of working capital. Purchase the equipment you need today while spreading your payments over the useful life of the asset. This allows you to preserve capital for other day-to-day expenses such as inventory, personnel and marketing.
- Increased company value. Because a lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement making you more attractive to investors and traditional lenders when you need them.
- Flexibility. As your business grows and your needs change, you can add to or upgrade through a master lease or add-on addendums.
- Speed. Leasing allows you to respond quickly as your need for equipment arises. You can be approved with minimal documentation and have the equipment you need generating revenue for your business quickly.
- Tax advantages. The IRS does not consider an operating lease to be a purchase, but rather a tax deductible overhead expense. Therefore you are able to pay for the equipment with pre-tax dollars rather than after-tax profits.
- Avoid obsolescence. Leasing is an extremely attractive option for you video needs purchases because technology can change quickly. Upgrade provisions can be added to most leases which are a simple way to hedge against obsolescence.
- Simple. The lease application is only a single page and approval can come in as little as 24 hours.
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