Author: Jim Coxon

Because I specialize in equipment and software financing between $1k - $1mil, it's important that I move rapidly. And with the help of my team, I'm able to move deals from application to funding within hours. And not just for well-established companies, I close quickly on start-ups and sole props as well. I work hard every day, rarely take a day off, and ALWAYS return calls. And with my decade-plus of experience in finance, I know how to work a deal. Call me and find out for yourself.

Financing vs Leasing, the basics.

Financing and leasing are two different ways for businesses to acquire equipment or vehicles.

Financing refers to the process of obtaining a loan in order to purchase the equipment or vehicle outright. The business will make payments on the loan, which will typically include both the principal and interest, until the loan is fully repaid. Once the loan is fully repaid, the business will own the equipment or vehicle.

Leasing, on the other hand, is a process in which a business rents equipment or vehicle from a leasing company for a specific period of time. The business will make regular payments to the leasing company for the use of the equipment or vehicle. At the end of the lease term, the business has the option to purchase the equipment or vehicle for a pre-determined price, return it to the leasing company, or renew the lease for another term.

One key difference between financing and leasing is that financing requires the business to make a large upfront investment, while leasing does not. Additionally, financing requires the business to take on debt, while leasing does not. Leasing also allows the business to upgrade or replace equipment more frequently, which can be especially beneficial in industries where technology and trends are constantly changing.

In summary, financing is a process of obtaining a loan to purchase equipment or vehicle outright, while leasing is a process of renting equipment or vehicle from a leasing company for a specific period of time. Financing requires a large upfront investment and taking on debt, while leasing does not. Leasing also allows the business to upgrade or replace equipment more frequently.

Because I specialize in equipment and software financing between $1k – $1mil, it’s important that I move rapidly. And with the help of my team, I’m able to move deals from application to funding within hours.

And not just for well-established companies, I close quickly on start-ups and sole props as well.

I work hard every day, rarely take a day off, and ALWAYS return calls. And with my decade-plus of experience in finance, I know how to work a deal. Call me and find out for yourself.

The top six reasons restaurants lease equipment

Yes, restaurants can lease equipment. In fact, many restaurants choose to lease equipment because it allows them to acquire the equipment they need without having to make a large upfront investment. Leasing equipment can provide many benefits for restaurants, such as:

Preservation of capital: Leasing equipment allows restaurants to preserve their capital, which can be used for other important expenses such as inventory, marketing, and expansion.
Tax benefits: Leasing equipment can also provide tax benefits. In many cases, the payments made on a lease can be written off as a business expense.
Flexibility: Restaurants may choose to lease equipment because it allows them to upgrade or replace equipment more frequently. This can be especially important in the food service industry, where new technology and trends are constantly emerging and older equipment may become obsolete.
Cost-effective: Leasing equipment can be more cost-effective than purchasing equipment outright, especially for restaurants that only need the equipment for a short period of time.
Maintenance and repair: Many leasing companies offer maintenance and repair services as part of the lease agreement. This can be beneficial for restaurants, as they don’t have to worry about the added cost and time of maintaining and repairing the equipment themselves.
Predictable costs: Leasing equipment can make budgeting easier, as the payments are fixed, making it easier to plan for future expenses.

In summary, restaurants can lease equipment, and many do. Leasing equipment can provide various benefits such as preservation of capital, tax benefits, flexibility, cost-effectiveness, maintenance and repair services and predictable costs. This can be especially beneficial for restaurants in the food service industry, where new technology and trends are constantly emerging and older equipment may become obsolete.

And not just for well-established companies, I close quickly on start-ups and sole props as well.

I work hard every day, rarely take a day off, and ALWAYS return calls. And with my decade-plus of experience in finance, I know how to work a deal. Call me and find out for yourself.

Should mechanics continue to lease equipment?

Mechanics, like other businesses, may choose to lease equipment for a variety of reasons, including:

Preservation of capital: Leasing equipment allows mechanics to acquire the equipment they need without having to make a large upfront investment, which can preserve their capital for other important expenses.
Tax benefits: Lease payments made by a mechanic can generally be written off as a business expense, which can help to reduce the overall tax burden of the business.
Flexibility: Mechanics may choose to lease equipment because it allows them to upgrade or replace equipment more frequently. This can be especially important in the automotive industry, where new technology is constantly emerging and older equipment may become obsolete.
Cost-effective: Leasing equipment can be more cost-effective than purchasing equipment outright, especially for mechanics who only need the equipment for a short period of time.
Maintenance and repair: Many leasing companies offer maintenance and repair services as part of the lease agreement. This can be beneficial for mechanics, as they don’t have to worry about the added cost and time of maintaining and repairing the equipment themselves.
Predictable costs: Leasing equipment can make budgeting easier, as the payments are fixed, making it easier to plan for future expenses.

In summary, mechanics may choose to lease equipment for various reasons such as preservation of capital, tax benefits, flexibility, cost-effectiveness, maintenance and repair services and predictable costs. This can be especially beneficial for mechanics in the automotive industry, where new technology is constantly emerging and older equipment may become obsolete.

And not just for well-established companies, I close quickly on start-ups and sole props as well.

I work hard every day, rarely take a day off, and ALWAYS return calls. And with my decade-plus of experience in finance, I know how to work a deal. Call me and find out for yourself.

Harness the secrets of equipment leasing and defeat the IRS

There are several tax benefits of leasing equipment for businesses:

Deductibility of lease payments: Lease payments made by a business are generally considered tax-deductible expenses, which can help to reduce the overall tax burden of the business.
Off-balance sheet financing: Leasing equipment allows a business to keep the equipment off its balance sheet, which can improve its financial ratios and make it more attractive to lenders.
Section 179 Deduction: Businesses can take advantage of Section 179 deduction, which allows them to deduct the full cost of qualifying equipment up to a certain limit in the first year, rather than depreciating the equipment over several years.
Bonus Depreciation: As of 2021, businesses can take advantage of the 100% bonus depreciation, which allows them to deduct the full cost of qualifying equipment in the first year, regardless of when it was placed in service.
State tax benefits: Some states may offer additional tax benefits for leasing equipment, such as sales tax exemptions or reduced property taxes.

It’s important to note that these tax benefits may vary depending on the type of equipment being leased, the terms of the lease, and the jurisdiction in which the business is located. Businesses should consult with a tax professional to ensure they are aware of all tax benefits that may apply to their specific situation.

In summary, leasing equipment can offer various tax benefits to businesses, such as deductibility of lease payments, off-balance sheet financing, Section 179 Deduction, Bonus Depreciation, and State Tax benefits. These benefits may vary depending on the type of equipment, the terms of the lease and the location of the business. Consult with a tax professional to understand the tax benefits that apply to your specific situation.

And not just for well-established companies, I close quickly on start-ups and sole props as well.

I work hard every day, rarely take a day off, and ALWAYS return calls. And with my decade-plus of experience in finance, I know how to work a deal. Call me and find out for yourself.

Cash is King

Preserving capital is important for businesses because it allows them to have a financial cushion to help them weather unexpected expenses or downturns in the market. When a business has a reserve of capital, it is better able to handle unexpected expenses such as equipment repairs, unexpected increases in the cost of goods, or even a temporary loss of customers.

Capital also allows a business to invest in growth opportunities. For example, a business with a strong reserve of capital may be able to expand into new markets, develop new products, or acquire other companies. This can help the business to increase its revenue and grow its market share, which in turn can help to increase its profitability.

In addition, maintaining a reserve of capital can also help a business to secure financing when it needs it. Lenders are often more willing to lend money to a business that has a strong balance sheet and a healthy reserve of capital. This can make it easier for a business to secure financing for expansion or other growth opportunities.

Finally, preserving capital is also important for personal financial reasons. Having a reserve of capital can provide peace of mind and security, knowing that you have a safety net to fall back on if things don’t go as planned.

In summary, preserving capital is important because it allows a business to have a financial cushion to help weather unexpected expenses, invest in growth opportunities, secure financing, and provide peace of mind and security.