Leasing vs Financing Secret Revolutionizes Business Equipment Costs
Advantages of Financing Business Equipment
On the other hand, financing offers the benefit of ownership. Once the loan is paid off, the equipment becomes an asset on the balance sheet, potentially providing tax depreciation benefits. Owning equipment can be more cost-effective over the long term, especially if the equipment has a long useful life and does not become obsolete quickly.
Financing can also offer more control over the equipment, allowing businesses to modify or sell it as needed. Additionally, some lenders offer competitive interest rates and terms that can make financing an attractive option for businesses with strong credit histories2.