More often than not, when purchasing equipment, business owners will look at every option before making their decision. This is especially true when the cost of equipment is higher than $2,000-$3,000. Leasing is an attractive option due to how leases allow the buyer to affordably spread the costs of the equipment across 12 to 60 months, while still tapping into the tax advantages. Here are few points as to why your company should offer leasing an option to your clients:
- Lease payments are a tax-deductible expense for your customer.
- According to the Equipment Leasing Association of America, approximately 80% of U.S. companies lease some or all of their equipment.
- Leasing gives customers the option to purchase now without any upfront cash.
- In most cases, selling a payment is easier than selling a total price.
- Business owners usually focus on short term expense versus short term profit. With a lease, payments become more attractive and allow better measurements of profit for the business owner.
- Your customers are able to purchase more of what they need with leases. Let’s say the product they need is $2,500.00, and they want to purchase a service agreement and install, but, the business owner does not have the upfront cash for all 3 items. Upon approval, you can bundle the cost together for a low monthly payment.
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