Remaining In Control With Sale Leaseback Financing
Using existing equipment, businesses may be able to get needed capital. With sale leaseback financing, the company’s current equipment remains under you. The business owner has full control and is never taken out of production. It’s a simple transaction. Your business sells your equipment and leases it back. The capital your business receives from this transaction can be used for anything your business needs, without restriction. A business finance consultant knows the ways of these lenders and has the contacts to secure financing for virtually any type of business.
In addition to the initial cost and obsolescence, leasing your equipment can also provide your business with a substantial tax advantage. While you should always consult with your tax adviser first, most equipment leases can be structured so that you can write off 100% of the annual lease payments. By contrast, current tax laws only allow a business to write off the interest paid on loans. However, because a lease is a rental and the business is only using the equipment, the business can usually write off all of the monthly lease payments. So, this makes it just like any other legitimate business expense.