To Lease or Not To Lease, That is the Question…
When budgets get tight, capital expenditures are often the first thing to go on the back burner. But you’ve still got work to do, and you’ve got a job that can’t get done without the right equipment. Leasing that equipment may make the most financial sense. Why?
You won’t need a large down payment. In most situations, your initial expenditure will be a security deposit and two months rental. After that, your monthly rental payment covers 100% of the equipment cost.
Immediate impact on the bottom line. When you purchase equipment, you are banking on a future return – once the equipment is paid off. With leasing, you only have to cover the monthly rental payment before you impact your bottom line. Think of it this way: a monthly payment of $500 works out to a cost of just $16.67 per day. Divide $16.67 by an 8 hour workday and your hourly cost is just $2.36.
Preserve your credit. Leasing will not impact your credit line with your bank. If other needs arise, your credit will not be tied up in a capital expenditure.
Stay on the cutting edge. As your industry is constantly evolving, sometimes the equipment you buy is obsolete by the time you’ve made the final payment. With leasing, updating is easy.
Free your cash. When your cash isn’t tied up in overhead, you can conserve your working capital. You can use it for income producing investments. Think of it this way - the cash you save can be reinvested to create earnings that can offset the cost of leasing.
Help your accountant. In some situations, leases can have accounting benefits. Monthly lease payments may be fully deductible as operating expenses rather than purchased equipment being considered an asset.
Tax savings? When leased equipment falls into certain categories, it can result in reduced taxes, essentially reducing your monthly rental. It may be worth a trip to your tax advisor to learn more.
Quality Cleaning Equipment Available for Lease from DawnChem
We can create a flexible finance program for all of our quality cleaning equipment including:
New 1610 with ReadySpace Technology
New T7 Micro-Rider Scrubber
New T5 Walk Behind Scrubber
New T3 Walk Behind Scrubber
Rider and Walk Behind Auto Scrubbers
Sweepers
Burnishers and Floor Machines
Wet/Dry Vacuums
Carpet Extractors
Contact DAWNCHEM today to learn more 800-533-DAWN
