Key Benefits of Leasing Equipment for Manufacturers

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by Equipment Leases Inc.
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KEY POINTS SUMMARY
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COST EFFICIENCY
Reduce Upfront Costs
Leasing allows manufacturers to avoid large
capital expenditures. Instead of purchasing
expensive machinery outright, manufacturers can
spread out payments over time, freeing up capital
for other vital areas.
According to a study by Deloitte, 81 of
companies report significant financial benefits
from leasing compared to purchasing equipment
outright.
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FLEXIBILITY SCALABILITY
Adapt to Changing Demands
Leasing provides manufacturers with the
flexibility to upgrade their equipment as
technology advances, helping businesses stay
competitive in fast-paced industries.
A report by Forbes highlights how businesses
leveraging leasing can quickly scale operations
up or down based on current demand.
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IMPROVED CASH FLOW
Better Budget Management
By leasing equipment, manufacturers can maintain
smoother cash flow and allocate funds to other
areas such as RD, marketing, or workforce
development.
According to Harvard Business Review, maintaining
consistent cash flow is crucial for growth and
operational efficiency in manufacturing.
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Tax Benefits
Potential Tax Deductions
Leasing offers tax incentives such as the ability
to write off payments as a business expense. This
can result in significant savings, helping
manufacturers lower their overall tax liabilities.
The IRS encourages businesses to take advantage
of tax-deductible lease payments under Section
179.
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ACCESS TO LATEST TECHNOLOGY
Stay at the Cutting Edge
Leasing ensures access to the latest equipment
without the burden of owning outdated machinery.
Manufacturers can swap out or upgrade equipment
at the end of a lease term, staying ahead in
innovation.
A Manufacturing News article revealed that 60 of
manufacturing leaders are turning to leasing to
remain technologically advanced.
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Preserve Credit Lines
Maintain Borrowing Power
Leasing helps manufacturers keep their existing
credit lines open for other needs, such as
expansion, hiring, or emergencies. This allows
businesses to maintain liquidity while still
acquiring essential equipment.
According to a Financial Management survey,
companies that lease are 30 more likely to
maintain flexible credit limits, which is
essential for long-term growth.
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Start Leasing for Long-Term Success
Leasing equipment empowers manufacturers with
flexibility, cost savings, and the ability to
stay technologically competitive.
Unlock the benefits of leasing today!