Starting a business of your own requires obtaining enough funding to get the business off the ground. Unfortunately, new business owners realize their budget is tighter than expected, so they look for ways to save money without adversely affecting the quality of the products they sell. One way to do this is to consider leasing the machinery you need.

Consider a Fair Market Value Lease

Imagine you want to own the equipment you need to operate the business, but you don’t have the funding. One option is the fair market value lease. This involves leasing your equipment until you have the capital to buy it outright. When you’re ready to make the purchase, the equipment will be priced at the current market value, and the lease payments you previously made will be deducted from the final cost.

Try a Dollar Buyout Lease

Here is another leasing option that can work to your advantage. This type of lease is applied to machinery that will depreciate quickly, making it more difficult to sell. You will be required to make regular lease payments on the machine. The fees will be high, and you’ll end up paying for the total cost of the machine by the time the lease expires. At that time, you’ll have the option to buy the machine for one dollar.

Save Money on State of the Art Equipment

Even if you have the capital to buy your equipment, you may prefer to lease the machinery you need instead. This saves you money by allowing you to use your capital to make smaller lease payments. When the lease expires, you may choose to replace the equipment with updated models of the same machines. This can help you take advantage of the latest innovations, which will keep your business competitive.

It’s Still a Tax Deduction

You may prefer to buy your equipment simply because it means you can claim that expense as a deduction on your taxes. Most business owners are unaware that leased equipment can also be claimed as a tax write-off. This means you’ll get the equipment you need for the low lease payments, while also benefiting at tax time.

While your business may rely on heavy machinery, that doesn’t mean you will have to have the funding to buy this equipment outright. Leasing equipment offers advantages that can help your bottom line, while you concentrate on growing your business’ reach.