5 Ways Leasing Can Benefit Your Company

With traditional banks decreasing their loans, it can be tough getting credit for your company's needs. Leasing can be an excellent solution in light to the present economic environment. Leasing has many benefits, including:

• Conserving working capital - Purchase the equipment and technology you need today while spreading your payments over the useful life of the asset. This allows you to preserve your capital for other day-to-day expenses such as inventory, personnel and marketing.
• Flexibility - Leasing can be very flexible for your company. You are able to add or upgrade through a master lease or add-on addendums.
• Speed - You can be approved with minimal documentation and have the equipment you need in operation.
• 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.
• Avoiding obsolescence - Leasing is an extremely attractive option for all your computer hardware and software purchases because technology becomes outdated very quickly. Upgrade provisions can be added to most leases, which are a simple way to hedge against obsolescence.

Brad Harmon is the President at a leading financing company, First Star Capital (www.firststarcapital.com). Brad is a frequent contributor to online publications and newsletters, and is the author of this blog on commercial financing topics.