Leasing gives you full use of equipment, asset, machinery or vehicle over a specified period without the user having the full responsibility of owning it. In other words, leasing means to rent or let for a particular period. The duration of the lease is referred to as the lease period, and at the end, the user has two options. You can either renew the contract at a nominal rent to carry on using it. Leasing gives you the benefit of using the latest equipment with reduced initial outlay. This way of working optimizes your cash flow and gives you the advantage of tax relief on your rental dues.
Here are some top reasons why you should lease your security equipment:
- It allows you to hold on to your money
In the world wherein we live today, cash is considered the king and finding a way to hold on to your cash is one luxury you can’t afford to give yourself. Leasing vehicles and equipment especially security equipment allows you to leave your money sitting in the bank without the need to tie it down in depreciating assets with capital investments.
- Tax saving benefit
When you lease a piece of security equipment, it is compulsory for you to pay the lease on the equipment which is an expense against your business. By doing this, you are reducing your payable taxable income.
- More importantly, leasing helps you to safeguard your money.
How? Rather than buy a new piece of equipment or asset and pay a pocket-emptying upfront payment, leasing gives you an avenue to make payments only as at when due. With leasing, you make payments only on designated days of the month. Since you know when your payment falls on, you have time to source for the money to pay.
- Leasing gives you access to the latest security equipment.
A new piece of equipment has an expected lifespan, and as the end approaches, you need to gather funds to buy a new one so that you can have an up to date equipment. This isn’t the case with leasing; leasing allows you to negotiate lease period and once the equipment is outdated, you can set up a new lease agreement to replace the obsolete equipment with a new one.
- Leasing promises flexibility.
With leasing, you have access to a piece of security equipment that fits your need and that of your business. Leasing works for both short term and long term arrangement. That is, if you need equipment for a short while, leasing is the best option considering that you can enter a lease agreement that covers the duration of your need.
- Leasing helps you to maintain your credit rating.
In the business world, it’s critical to maintain your credit rating. Thanks to the structure of lease arrangements, you can manage your expenses every month basis, retain your rights to borrow and reduce your payable taxable income all at a go. All these help to maintain your credit rating thus making it easier for you to draw lines of credit should the need arise.
Should you need a piece of security equipment and you can’t afford to buy a new one, leasing is a viable and less economical option to consider.