MaxPro Leasing - Equipment leasing, equipment financing, lease financing of business equipment, photo equipment, audio equipment, video equipment, computer equipment, medical equipment, dental equipment.

Cash vs. Leasing

Is Cash Always King?

It all depends, Let’s take a look how cash flow can affect your business when acquiring assets:

	MaxPro Leasing	Cash
Protection against owning obsolete equipment?	Yes	No
Working Capital preserved?	Yes	No
Flexibility	Yes	No
Delay payments until equipment begins to pay off?	Yes	No
Upgrade equipment without difficulty to cash flow?	Yes	No
Can I acquire equipment without a substantial cash investment?	Yes	No
Can I match my equipment payment to my cash flow?	Yes	No
Can I return the equipment after I use it?	Yes	No, Hope you like messing with the classified ads.
Deferred Initial Payment?	Yes, possible to defer first payment for up to 90 days.	100% Due Up-front
Down Payment?	Generally 2 low payments up-front which may be applied to your balance	100% Down
Tax Benefits?	Operating Lease payments may be 100% tax deductible when show as operating expense.*	Depreciation is typically taken over the useful life of the equipment

*Consult your accountant for tax benefits

Most businesses will look at leasing and ask the question, why lease when they have other avenues to go down such as paying cash? If you pay cash, you just lost out on a good chunk of money that "could have or should have" been put back into your growing business.

Consider a recent business survey that shows on average that for every dollar you save or put back in your business as working capital or cash flow you potentially earn 17%. What does this mean you ask? Simply, if you went out and paid cash for a $10,000 piece of equipment you not only lost the up-front initial cash outlay of $10,000 but you also lost an extra $1,700 on the first year alone. Kind of surprising, huh?

What happens if you needed that money for unexpected expenses, inventory, advertising, expansion, or even payroll? Well, you get the idea…

Would you necessarily pay an employee up-front for three year’s worth of performance? (I know, unless your in Pro-Sports). So why do that with your equipment? Have your equipment right away and working for you producing revenue right from the start.

If you have more questions, great! The answer may be just around the corner at our Frequently Asked Questions…