This article is a short guide on why lease any dump truck, work trucks, or heavy equipment, is beneficial to any sole prop, corp., or start-up.
1. Protection.
Leasing provides any individual & or company with protection. By protection I mean, if for any reason you or your company gets sued or has all your assets seized due to unpaid bills, or IRS problems. You are protected when you lease. The dump truck or heavy equipment is owned by the leasor, until you pay it in full.
You are free to use it any way you need to, in order to make money.
in most cases (not all), the only thing the lease company is worried about is the payment & the insurance.
2. Tax write-off.
Any lease that is worth anything has a residual. If it is a 10%, 20% or higher. This means that 10% or 20% of the amount financed is due at the end of the term. This is the case with over 80% of all leases with residuals. You also get to write off 100% off all the payments you have made every year, until it is paid in full. If you finance it traditionally, or with a 1.00 buy out lease, your only going to write off the value, which is substantially less, or depreciate which is also less.
3. Options at the end.
When you have an option at the end of every lease you can own it, or give it back. After all you did do what you wanted, Make Money. Some lease company’s provide you the option to finance the remaining residual. The best part is you were not paying the rental rates of your local rental yard. Your paying financed payments, with all the benefits.
To sum it up your benefits from leasing vs bank financing are greater.
Source: http://www.ArticlePros.com/author.php?Mike Arnold
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