At Edison Capital Leasing LLC we appreciate the fact that running a small business is hard work. Whether you are setting up a small start up company with several employees, are a self-employed businessperson operating on your own, you will face daily challenges that, if handled improperly, could undermine your business's financial health and hinder its growth.
Any small business needs to make an investment of some type of basic equipment and supplies. If you are a carpenter, you will need various types of costly tools. If you are starting up a home-based accounting firm, you will likely need expensive software, workstations, copiers, faxes and the like. A software development firm will need computers, desks, chairs, telephones and dedicated servers. All of this can quickly add up and drain your available reserves or even use up a good portion of your personal credit lines.
Lease or Pay Cash?
At first glance, it would seem that if you have cash, that is your best way to purchase equipment. However, that is not necessarily the case. We have many customers who purchase equipment with leasing when they have the cash in the bank.
Here are some of the reasons why:
- You have better uses for your cash. Whether that means using for non-equipment expenses like expansions, renovations, employee benefits and the like, or saving it for a rainy day, or spending it on the most important person in your company (you!); your cash can work for you in many better ways than in equipment.
- Equipment is better paid for while you are using it, not in advance. You wouldn't pay your employees salaries 2-5 years in advance would you? Neither should you pay for your equipment before you use it either.
- Technology is speeding up the world at an ever increasing pace. It is also causing equipment to become obsolescent, generally much faster than we imagine when we purchase the equipment. Leasing means that your cash is not tied up into a rapidly depreciating asset, protecting your bottom line.
The question is, what is best for your business both now and in the future. As your business grows, will you wish that you had that cash when an opportunity comes up to make a smart investment that requires liquidity? Only you know what your business needs will be. If you are unsure, let's talk, so you can make the best business decision for you.
Contact Edison Capital Leasing LLC today and let us show you how we can help preserve your capital, maintain your personal credit rating and reduce your corporate tax burden!