Renting equipment is one way of adding equipment to your operation. It is true that renting allows you to get equipment oftentimes quicker than waiting to have something built, and also allows for your business to be easily scalable in good times and bad. The downside is the very large payment and eventual ownership down the long tunnel.
Leasing or traditional financing of equipment does lock you in to ownership, but also allows for greater freedom with cash flow, outright ownership at the end of the specific term, creates credit history and often times greater financial strength on your Balance Sheet. Contact your Territory or Specialty Markets Rep to review your needs.
Advantages of Leasing
Are you familiar with an Installment Lease or a TRAC Lease? Do you understand the benefits of both? Some segments of the transportation industry are performing very well. As a result of being highly profitable, there are needs for tax deductions. Traditional equipment purchases using cash or loans allows for depreciation or even bonus depreciation to be utilized as a tax deduction.
This may fit your needs for 2013, and Trans Lease can provided traditional loan and security agreements. But are you planning on making money next year? Are you finding yourself being an Alternative Minimum Taxpayer? Leasing can provide a steady tax deduction and even help shelter you against AMT. Contact your Territory or Specialty Markets Rep to review your needs.