Planning to acquire new equipment for your new venture? Faced with the dilemma of buying or leasing? The following points have been determined by industry experts to help you make up your mind and arrive at a sound financial decision that proves to be beneficial for your business in the long run. These are the top 10 advantages that come with a sound lease program:
Improves The Flow Of Cash With Significant Tax Savings
Your entire lease payment is tax deductible and does not subject you to heavy administrative duties. A lease does not impact your profit and loss statement since it is considered to be an expense. Many leasing companies have reported that leasing for commercial vehicles has witnessed tremendous growth over the last 5 years as open-end leases do not impose any monetary obligations at the end of the lease term except in case of body damage or wear and tear.
Allows You To Keep Up With Advancing Technology
You can lease new or old equipment depending on your specific industry needs. With assets soon becoming outdated Cheap Hector Moreno Jersey , short-term leasing is the safest option for companies who rely on advancing technology. Financing a commercial vehicle every few years can prove to be an expensive affair for a growing business.
Boosts Your Business Even When The Cash Reserve Is Limited
Commercial vehicle financing calls for a huge investment initially which not a feasible option for a small business or a start-up venture that does not have adequate cash reserve to finance the purchase. With leasing, the initial investment is a fraction of the purchase amount and the following monthly payments are typically small viable figures.
Allows You To Escape The Costs Of Tolls and Parking
Lease commercial vehicles are eligible for toll and parking deductions.
Pick The Right Lease Category For A Profitable Business
A commercial vehicle lease falls into different categories. A close-ended lease allows you to walk-away at the end of the payment term without any obligations. No surprises await you at the end of the term with a close ended lease as the residual value is determined by the company. An open-ended lease gives the leaseholder the freedom to determine the vehicle's residual value and when properly structured proves to be a profitable investment. It is least expensive as you only pay for the miles you run. A lease offers incredible flexibility during downtimes and the lessee can also take advantage of a lucrative resale market. The lease provider takes care of all the tedious and time-consuming paperwork while you focus on the core operations of your business.
A Reduced Upfront Cost Enables You To Invest In Other Needs Of Your Business
The biggest benefit of a lease is the low initial investment which makes more cash available for you to invest in other areas of your business. A well-documented lease agreement means more cash on hand and more opportunities to expand your operations.
A Preset Lease Value Permits You To Acquire Multiple Vehicles Simultaneously
With a flexible lease credit line, you can acquire more vehicles in a short time span. It is a practical option for businesses that employ multiple vehicles for their operations. Leasing is the most viable way to save money when acquiring a new fleet. Many financial services provide lease and purchase options as well as insurance products to customers who choose commercial vehicles Cheap Gregoire Defrel Jersey , including sprinter vans, and smart cars. Commercial vehicle customers in Canada enjoy the benefits of leasing, financing and insuring their commercial vehicles from Freightliner Cheap Gerson Jersey , Western Star, Thomas Built and Fuso via Daimler Truck Financial.
Avoid That Massive Depreciation Hit
With a lease, you do not have to worry about the shocking value of the commercial vehicle which crashes down to almost 40% of the actual cost at the end of three years. Depreciation makes you lose a massive amount of money when you finance a heavy-duty commercial vehicle which can be easily avoided with a commercial vehicle lease.
No Penalties Await You At The End Of The Leasing Period
Fixed priced maintenance plans Cheap Federico Fazio Jersey , deduction of accrued mileage, value leasing programs, and preventive maintenance programs help in keeping the costs under control. There are no surprise penalties or unpredictable costs at the time of lease settlement.
You Enjoy Complete Control Over Your Cash
A commercial vehicle lease does not impact your company's credit. Many lease programs have a no down payment option and give you a clear understanding of all the leasing expenses to be incurred during the payment term.
It is important to know that a commercial vehicle lease does not have a one size fits all program. Understand your business requirements Cheap Emerson Jersey , the purpose of your vehicle, the associated ancillary expenses of your lease, flexible payments terms Cheap Edin Dzeko Jersey , residual value, disposal fees, and security deposit if any before you finalise your decision to lease. <"http:www.aberstar.ca">Aberstar is an established logistics company of Canada offering timely Cheap Diego Perotti Jersey , customisable, and cost-effective freight services throughout Canada and the US. The company has an in-house expert, Dan Bell who can help you know your options prior to making a final decision. Being an experienced financial controller of the company Cheap Daniele De Rossi Jersey , he can help you weigh the pros and cons of leasing to ensure that you get the best returns on your investment. Avoid the downsides of an outright purchase
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