Buy or Lease Your Laser?
In difficult times, many businesses are loath to use their hard-earned working capital to buy an expensive piece of kit. However, this reluctance to spend could have unfortunate consequences.
It can mean continuing to use outdated equipment with a commensurate drop in productivity and increases in downtime and maintenance. It may mean cutting corners so that the business invests in cheaper, inferior equipment that does not meet its real needs. At the end of the day, it can mean the company losing out to its competitors.
The laser leasing option
Leasing a laser machine saves your working capital for day to day business expenses, business expansions or unexpected costs.
A lease represents a pre-determined monthly line item, which can help you budget more effectively.
The laser you need – in days
Rather than wait for adequate savings or profits, your laser can arrive within days. The new laser machine or system can offer you all the latest technological advances and fulfil your company’s specific production needs from Day One.
Advances in laser technology are continuous. To ensure you stay at the cutting edge, you can take on a short lease to avoid the hassle of buying the laser and then trying to resell it as industry demands and technology move on.
Good for the balance sheet
Of course, it’s worth talking to your financial advisor first but leasing can present your business with potential tax benefits. In most cases, leasing allows a full deduction of lease payments against current earnings. It also preserves working capital. Capital that would not be there if you had to pay for your laser upfront.
Monthly leasing payments are considered a business expense rather than long term debt. The finance is secured on the asset so it’s not like a traditional business loan. With very little debt on your balance sheet, it should be easier for you to borrow money for other business purposes.
Suitable for new or old businesses
For established businesses, laser leasing is an efficient way of preserving working capital. For start-up businesses it’s a way of getting the laser the new company needs from the get-go. However, as a start-up, you may need to provide a credible personal guarantee to the lender.
TLM Laser can help you select the laser that’s right for your company with a leasing plan that matches your business and financial requirements.
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