Many small businesses struggle with cash flow and must keep the money in the bank. Because leases rarely require a down payment, you can acquire new laundry equipment without tapping much-needed funds”.
key benefits of leasing commercial laundry equipment for your business.
- Conserve and Control Cash. Equipment leasing saves your working capital (bank lines) for day-to-day business expenses, business expansions, or unexpected business related expenses. In addition to saving your working capital, with a lease you have a pre-determined monthly line item, which can help you budget more effectively. With predictable monthly expenses you can develop long-term plans for your business with confidence and get your business set up with the equipment you need, while keeping your cash flow available for other expenditures.
- Upgrade outdated Equipment. Equipment leasing can help you stay on top of the latest advances in equipment and technology. How long do you plan to keep the asset? If you’re only planning to keep it for the short term, you may find that leasing is a better alternative than buying it and trying to resell it when you no longer need it. You can also determine the length of your lease, so if you work with technology that changes rapidly, you can take on a short lease to ensure you’re always at the cutting edge in your industry.
- More Attractive Balance Sheet. Monthly lease payments are viewed as a business expense instead of long-term debt. Having little debt on your balance sheet helps you secure financing to fund your business.
- How does tax relief with leasing reduce corporation tax?If during the tax year your business spends £3,000 on leasing equipment then instead of paying 20% corporation tax on £25000 you would only pay 20% of £22,000 i.e. £4,400. Therefore the corporation tax liability would reduce by £600