Harnessing The Financial Benefits Of Equipment Leasing
Choosing whether it’s more beneficial to lease equipment rather than buying outright is something that most businesses must address at some point.
Determining which path isn’t necessarily that straightforward and neither is it a one-time decision. Even more confusingly, sometimes a hybrid model of purchasing and leasing equipment can be the most financially advantageous.
Understanding the pros and cons of each is key. The following discusses what benefits can be returned from an equipment leasing model.
Below are some of the primary reasons to consider leasing from Nexxis
1. Flexibility and access to the latest technology
Now, more than any time in history, is seeing the reality of technological advances not only entering mainstream use – but becoming the norm. Robotics and semi-autonomous equipment are two major examples.
As technological ability continues to evolve, so too does equipment become smarter. This means tasks can be completed more efficiently, faster and at a lower cost. Leasing allows consumers to take full advantage of upgrades as they become available. Leasing also allows for equipment to be returned at the end of the lease term and upgraded to a newer product. This removes the risk of outlaying capital now for today’s latest tech only for it to become a rapidly decreasing value asset when future iterations inevitably hit the market.
2. Cash is King
Purchasing equipment often requires a significant upfront cost, whereas Leasing doesn’t require this financial burden, and allows cash to be invested elsewhere in the business.
3. Asset maintenance and reduced downtime
Owing high-tech assets can contribute to considerable ongoing and unplanned maintenance expenses. However when you lease equipment, the cost of repairs and maintenance is the responsibility of the lessor.
Utilising the latest technology very often leads to dramatically reduced downtime. Offline assets cost money – often to the tune of hundreds of thousands of dollars. When equipment that you own fails, the financial impact of it being offline while it gets repaired can be considerable. The cost of the repair might also require deep pockets. However, if leased equipment breaks down, Nexxis will swiftly repair or replace it as needed to minimise down time.
4. Tax benefits
Rather then claiming the tax depreciation over the useful life of the equipment purchased, an operating lease allows for tax deductions to be incurred when the expenditure is incurred.
At Nexxis, our wide range of NDT products is available to our customers on a rent, lease or purchase basis. Our decades in the equipment procurement industry mean we understand that your requirements today might not match tomorrow’s – making flexibility key. From leasing custom robotic solutions to the latest inspection cameras, mechanical tooling and NDT equipment, our unique blueprint makes us the provider of choice for a diverse range of global industries.
