Benefits to a Startup from Equipment Leasing
This is not the only way that a startup company stands to benefit from picking this option under startup equipment financing.
For one thing, it gets to hold open the lines of credit available to it and make use of them only at times of great need, which are bound to crop up after the business takes flight. The lease payments which it makes would be considered as a business expense and deduction, which means taxes too can be deferred until the point where the lease payments are made.
Secondly, when upgrading equipment, which is bound to arise as a need some time in the future, equipment financing relieves the business of the need to sell the old equipment and buy something new at its own expense. Specifically, the lessee can just return the former and start getting funding for the latest model.
Thirdly, equipment financing also generally comes along with maintenance and repairs as part of the agreement, which can prove to be a boon for businesses which cannot afford excessive expense in that area.