Financing is a great way to acquire a new sign without all the up-front expense. There are many flexible financing options that may also provide you with additional tax benefits. Financing allow you to improve your image and advertising while conserving your working capital.
#1 LEASING IS FLEXIBLE
With leasing, you are able to customize a program to address your needs & requirements – cash flow, budget, transaction structure, cyclical fluctuations, etc. For example, some leases allow you to miss one or more payments without a penalty, an important feature for seasonal businesses.
#2 100% FINANCING
There is very little money down with leasing – typically the first & last month’s payment are due at the time of lease signing. Since a lease does not require a down payment, it is equivalent to 100% financing.
#3 LEASING IS FAST & CONVENIENT
Leasing allows you to add equipment or upgrade equipment under similar terms. Leasing can also allow you to respond quickly to new opportunities with minimal documentation. Credit decisions are usually made same day.
#4 TAX BENEFITS
The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your business income. Also, because lease payments are treated as expenses on a company’s income statement, equipment does not have to be depreciated over five to seven years.
Let the IRS help you save money when you lease new equipment. Structure your equipment lease to get the best tax advantages for your business. We offer both true tax leases & structures that allow you to take advantage of Section 179.
Section 179 is a great way to accelerate your tax benefits. Under Section 179, you can expense 100% of the cost of equipment acquired in 2020 up to $1,020,000. Depending on your tax bracket, you can save a portion of that equipment cost in tax savings. To take advantage of Section 179, we can structure your lease with a PUT (Purchase Upon Termination) option at the end of the term, such as $1, or a larger predefined amount such as 10% or 20%. At the end of term, equipment must be purchased of the lease renewed to be eligible for this deduction (equipment cannot be returned).
#5 IMPROVES CASH FLOW
Lease payments are historically lower than loan payments, hence conserving cash for other uses. Also, by leasing equipment you know the amount & number of lease payments over the life of the leasing period, so you can accurately forecast cash requirements for your equipment.
#6 MANAGE OBSOLESCENCE
A lease allows equipment to be returned to the lessor at the end of the lease term. You can then upgrade equipment without having to manage disposal & other ownership burdens. The risk of getting caught with obsolete equipment is lessened.
#7 BALANCE SHEET MANAGEMENT
Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your balance sheet, thus making you more attractive to traditional lenders when you need them.
#8 LEASING IS SMART
Eight out of ten companies lease some or all of their equipment, according to industry research. Why do they lease? Because the flexibility provided by leasing allows them to have the most effective operation possible. Companies that lease tend to be the most entrepreneurial & competitive.
To find out more about leasing options offered by BSC Signs, FAQs, or to fill out a secure online application CLICK HERE
ABOUT BSC SIGNS
BSC is an award-winning full-service licensed sign contractor and custom fabricator based in Broomfield, Colorado. We design, build, and install signage for businesses and organizations in Denver Metro, Colorado Springs, and all around Colorado and southern Wyoming.