Investing in capital equipment is an important financial commitment for both small and large organizations. As with any capital purchase, cash outlay and return on the investment must be considered.
Equipment leasing is an excellent option for any organization considering investment in new capital equipment. As with any capital equipment purchase, there can a large upfront financial commitment depending on your purchasing requirements. Equipment leasing can give you the options of not having to make a large initial outlay of cash for your purchase, which in turn will free up your working capital for other areas of your operation.
Another important consideration is having the time to generate new revenues on your investment as you are paying for the equipment. Equipment leasing gives you the flexibility of determining the length of time to pay for your purchase which puts you in control of planning a monthly payment that works best with your organizations needs. As your demand for product increases, leasing will make it possible to grow your inventory more quickly, without the large upfront cash investment.
Section 179 was designed with businesses in mind. Almost all types of business equipment may qualify for the Section 179 deduction. Every company needs equipment, whether it is new machinery, computers, software, office furniture, vehicles, etc. It’s likely that your business has purchased many of these items within the past year.
Section 179 was designed to make purchasing equipment (new and used) financially beneficial. The Deduction Limit is $500,000 (up from $250k previously). To take advantage of this offer, all you need to do is finance the equipment and use a special IRS form. If you are interested in financing CPM units, or have questions about Section 179, call us today at 800-273-5233.