Lease With Crystal

Lease With Crystal Riley and Lease One - a company that is dedicated to providing customized commercial leasing programs to meet the needs of growing businesses. We work directly with Lease One Vendors and businesses to structure leases from $5,000 to $5,000,000 with terms on ANY kind of equipment.

Wednesday, May 7, 2008

Never Pay CASH for Equipment!

Chances are you don't have a bank account full of idle cash, just exploding with 0's - and ready to be spent willy nilly. BUT, even if you did (and I hope you do!) PLEASE don't pay cash for your equipment outright.

But, Crystal - why not?

Because any business expert will tell you, and I agree, that there is always an area of your business that needs to be IMPROVED. There is always a sector of your business that needs attention, where the money would be better spent. 

Because the future is unknown, what if next month is filled with curveballs and you need capital to solve the dilemma?

Because the second you pay for your piece of equipment - it has ALREADY depreciated. And that depreciation is your loss. Whereas with leasing the depreciation (of up to $125,000) is tax deductible.

If you are itching to spend your money and purchase the equipment outright, do so, but then LEASE it back to yourself. 


2 comments:

Jeff Wendland said...

The tax deductible part is reason enough to lease and not pay cash. With the heavy taxing on small and medium sized business we need to deduct as much as possible, great tips.

Crystal Riley said...

It is so true... as business owners we all need to take advantage of every possible caveat that exists to benefit us. I hope to be shining the light on all kinds of things. Good luck with your business, I would love to hear about it - should you ever have a spare moment.