One of the big decisions a business has to make is if they’ll buy or lease equipment. The answer isn’t the same for every business. You may want to benefit from equipment long-term if you’re planning to use it over a long period, but it comes at a cost. Rentals work for businesses that don’t have that much capital or wouldn’t want to get tied up with owning equipment.
Whatever decision you make, Clarifi has the options needed to help with equipment financing. We offer several types of small business loans to help you get the working capital you need.
Renting Equipment
Renting equipment helps you preserve business funds and grants flexibility. You can get heavy equipment from John Deere and Northern Tool Equipment without spending much. Here are other advantages you can experience:
- More room to upgrade: You won’t have to commit to equipment, especially with upgrades coming faster in modern times. It will be easy to make a switch.
- Lesser expenses: Lower spending is the biggest advantage that rentals provide. You get equipment without affecting your cash flow.
- Flexible terms: Getting a rental is easy, and you have more control over any payment terms.
- Tax-deductible: Rentals are a business expense and therefore tax-deductible.
Getting rentals with an equipment loan from Clarifi can help you experience more freedom and control. It won’t affect your supply chain because you’ll have more money on hand. Call us to learn more about our programs.
Purchasing Equipment
Buying equipment may not be the option for every business, but you may want to consider it because of its advantages. Here’s what you can expect when you opt for a purchase:
- Depreciation: Most items like construction equipment are eligible for section 179 deductions. It means that you can receive tax savings each year for your equipment because of its depreciation.
- Ownership: This is the biggest benefit of buying equipment. If you plan on using it for a long time, the profit will outweigh the cost.
- Tax Incentives: Section 179 also provides incentives, including deductions for assets in its first year. By taking advantage of this, you pay fewer taxes no matter your bracket.
If you’re considering buying equipment, then you need good financing terms. Clarifi offers different loans, such as SBA, which will help you get started on your business endeavors. Contact us and start working with a specialist today.
To Buy or Rent?
Take your time when you’re deciding on buying or renting. Check the asset cost and factor in how much you’ll use it and its taxes. You’ll have to consider that technology might make your item obsolete or if the cost of rentals will be better in the long run.
If you need any help, Clarifi can provide you with a clearer picture. Talk to one of our specialists, and they’ll give you the information you need.