One of the major advantages to leasing — getting the most out of your businesses cash flow by allowing for payments over time, not all up front. Leveraging increases your buying power and makes better use of your equipment budget. And ensures a predictable expense pattern.
Talk to your accountant. Leasing offers a number of tax benefits not available to traditional equipment financing. Lease payments are often expensed which reduces the taxable income in your business. This strategy can result in tax savings as well as preserve debt to equity ratios because the equipment does not show as a capital asset on your balance sheet. Leasing can also help you to defer GST/PST/HST tax costs. These tax costs can significantly impact cash flow when you purchase equipment outright because the taxes are paid in advance. When you lease, tax costs are spread out over the term of your lease.
Preserve Your Cash and Lines of Credit
Cash is king. Leasing can help leverage your cash and preserve your lines of credit so your business always has the working capital it needs to grow. Your new LightCareRx system can be earning money right now, while you payout your investment over time.