Advantages of Equipment Leasing

Significant Tax Advantages

100% Tax Write Off
In most cases, the full amount of each lease payment is deductible for tax purposes 100%. Confirm with your accountant which lease option will be most beneficial for your company. You will see the deduction from an equipment lease is higher and may have more advantages than the depreciation benefits of ownership.

Preservation of Working Capital

100% Financing with No Down Payment Required
When businesses like yourself go to their local bank for financing equipment, needs for a down payment are common, along with additional collateral and financial information. Granite Peak Financial can arrange a lease with as little as one payment upfront which will go directly towards paying off the balance of your lease.

Low Monthly Payments
Equipment leasing, in most instances, can provide lower payments than offered in a conventional bank loan. Granite Peak Financial arranges your payments to work with your budget by fluctuating terms and working with the variety of buyout options we have available to achieve a payment that works for you. This can include skip payments and seasonal payments if need be.

Initial Purchase Costs Included In Lease
When acquiring equipment via Granite Peak Financial incidental costs such as delivery and installation charges can be put into the lease financing arrangement. If the equipment is purchased with cash these costs need to be paid up front and can be costly. We also can cover costs such as sales tax, insurance even service contracts.

Cash Forecasting
The term and payment on the equipment lease will be fixed once the lease documents are signed unlike variable rates on a credit card or bank loan. You know exactly what your payment will be every month and can better forecast for upcoming expenditures.

Preservation of Existing Credit Lines

Bank Lines of Credit
Save lines of credit you have with your bank that may have fluctuating interest rates for short term financial obligations like pay roll or inventory.

Credit Cards
Purchasing equipment on a credit card will increase your personal debt and may take years to pay off. This can lead to a lower credit scores and increased rates on future loans you look to acquire. By putting the equipment purchase on a lease you not only preserve your existing credit lines but more importantly you preserve your credit and credit score for future purchasing.

Elimination of Equipment Obsolescence

Ability to Update Obsolete Equipment
If you choose a fair market value lease and estimate a term for when the equipment will be obsolete you can transfer some of the risk of obsolescence to the leasing company. When the lease term comes up you will have the ability to turn those outdated computers or other equipment in without making the final buyout payment saving the company money and time.