How Leaseback Financing Will Benefit Your Business

By Provident Commercial Capital December 8, 2015 No Comments


Equipment can get expensive, and if you are finding you can’t afford it like you thought you’d be able to, there is hope. Leaseback financing is an option that allows you to actually sell your equipment to the financer and then lease it back. This gives you the option to continue with business as usual, even if you find yourself in a tight financial situation. In many cases, you obtain ownership of the equipment once again after the entire lease is paid off. There are some benefits of affording your equipment with this option. The following are just a few to consider.

One benefit of leaseback financing is your company can thrive when it comes time to pay taxes. If you work very closely with your financer and let them know your thoughts and intentions, you can have the deal structured in a way that will make it a tax write-off. This is due in part to the fact that your payments will become operating costs. Saving on taxes will put money in your pocket so you can jump on seasonal promotions, pay your employees a little more or make improvements you otherwise couldn’t make for your business.

Another benefit of financing this way is the terms are often longer and the payments are often lower. Businesses, and especially those that are small or starters, often have a hard time obtaining and accessing the funds they need for these types of purchases. With lower rates, the payments are more easily manageable. This opens up the money you do have to fund other monthly payments that might be higher or more pressing.

Finally, leaseback financing is typically offered to any small business type. Certain pieces of equipment have to qualify, but there is a long list, and yours might be on it. Sometimes companies with bad credit or those that are just starting up have a hard time getting the loans they need, but this type of loan is offered to a large variety of companies just like that.

Whether you have found yourself on hard times or are just starting a business and discovered that the expenses add up faster than you thought, leaseback financing might be the perfect option for your business. Speak to someone in financing today to learn more about what it is and how it works. By finding the funds you need to improve your business, you could discover success where you never thought it could be.

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