12 Reasons Why Leasing is the Smart Choice
If you need a permanent portable restroom solution, you may be trying to decide which is best: Purchasing or leasing. While you may think buying and owning your mobile bathroom suites would be the smart option, leasing can actually be the better choice for your business.
Here are 12 reasons why:
1. Leasing conserves working capital and offers up to 100% financing.
This allows you get the equipment you need without a major cash outlay.
2. Leasing offers potential tax advantages.
Lease payments on your portable restroom can be fully deducted as an operating expense. In states where no exemptions exist, leasing may allow you to spread out your sales tax liability over the term of the lease. Leasing also allows for the payment of equipment from monthly earnings rather than equity capital. (Always check with your own tax professional.)
3. Leasing avoids the use of short-term bank credit lines.
This allows you to conserve your borrowing capacity for other needs and emergencies.
4. Leasing allows you to acquire equipment not in your budget plan.
Changes are you didn’t have the acquisition of a portable restroom in your Capital budget plan. Leasing instead of purchasing, will allow you to get the unit you need, without breaking your budget.
5. Leasing provides a new source of funds.
If you did have a large purchase in your budget plan, leasing instead of buying will enlarge the pool of capital available to your company.
6. Leasing avoids large upfront payments.
This results in less drain on your operating budgets.
7. Leasing offers fixed payments.
You’ll know exactly what you need to pay each month. No need to worry about rising interest rates.
8. Leasing is convenient.
You don’t have to worry about loan committees.
9. Leasing is fast.
Most applications can be approved quickly.
10. Leasing is flexible.
Leasing allows you to set your own financing structure, with longer terms and lower payments, to help with your company’s cash flow.
11. Leasing helps you build credit history.
This is an important factor for new businesses or companies.
12. Leasing gives you the advantage of new, up-to-date equipment.
You don’t have to buy used equipment if your budget doesn’t allow for the purchase of new.