5 Benefits of Leasing Cat® Equipment
Are you thinking about buying a new Cat® Machine? There are many things to consider when it comes to choosing the right machine and financial options is one of them. That’s where Cleveland Brothers and Cat Financial can help your business.
If you want to own or have the option to own new Cat equipment and you don’t have the credit or equity to qualify for a loan, a financial lease could be an option for you. Typically, leasing can offer lower monthly payments and lower financial risks for your business. Read on for five simple reasons why finance leases can be more beneficial than a loan.
(NOTE: Consult your financial advisor or accountant prior to making any financial decisions. Cleveland Brothers is not a certified financial advisor.)
1. Out With The Old & In With The New
As equipment gets older, the cost of maintaining a machine becomes more costly and inefficient for your business. Leasing Cat equipment can help with orderly replacement cycles of older machines and avoid excessive maintenance costs with older assets. Additionally, leasing allows for more flexibility in terms of adjusting to changes in technology and business needs.
Stop fixing a clunker when you can lease a new Cat machine and take advantage of the latest technological advances in the construction equipment industry. Don’t miss out and let the competition pass you by. Leasing can help you gain a competitive edge.
2. More Convenient Than a Loan
Applying for a loan can be a hassle – filling out all those applications and crossing your fingers hoping to get approved. Equipment leasing requires less paperwork than applying for a loan and allows for faster funding so you can have your machine on the jobsite earning you money sooner rather than later.
3. Free Up Cash Flow
If your business runs on a fixed operating budget, leases can help lower the risk of investing in costly heavy machinery by structuring the lease agreement based on your business’ needs. Generally, leasing can offer lower monthly payments with a fixed rate; perfect for businesses with a fixed operating budget. This allows for easier financial planning so you can allocate finances to areas of the business that need it the most without having to skip out on buying a new machine.
4. Preserve Your Credit Line
In addition to freeing up your company’s cash flow, leasing can help free up your credit line so you can make investments where your business needs it the most. Leasing doesn’t affect your borrowing power, so having an open and healthy credit line allows for easier borrowing for additional projects. Whether that’s expanding your business with new office spaces or hiring new employees, don’t let acquiring a new piece of equipment stop your business from growing.
5. Tax Benefits – Thank You Uncle Sam.
Often times businesses will choose to lease equipment for a variety of reasons, some of which we’ve listed above. Another major factor with equipment leasing is that you can usually write off the entire payment as operating expenses. Section 179 has helped encourage small businesses to expand and reinvest in themselves. This tax code allows businesses to deduct the cost of qualifying equipment purchased or financed during the tax year. Consult your tax advisor or accountant for more information.
(NOTE: Consult your financial advisor or accountant prior to making any financial decisions. Cleveland Brothers is not a certified financial advisor.)
Want to learn more about Cat Financial Lease Options?
Visit Cat’s Lease Or Own Comparison Tool to see which option is right for you. Or to see a breakdown of the various lease options CAT Financial offers, download the PDF below:
Download CAT Finance Lease Chart
Speak to a Cleveland Brothers’ Representative today about expanding your fleet and leasing a new Cat Machine.
Sources:
Balboa Capital
Smarter Finance USA
Section179.org
Internal Revenue Service