admin July 18, 2019

Any business venture that is starting out will have constraints over the cash available to them at any particular time. This cash may be required to fulfill other transactions which are crucial to the take off of the business. Therefore, if the business is about landscaping, and you are in dire need of the equipment required for such a venture, for example, the best option for you would be to lease the your needed items instead of purchasing them immediately.

Leasing offers many benefits to the business including flexibility, credit preservation, simplified budget procedure and much lower cost. If you are starting out on your business venture, learn to take full advantage of investment insulation and credit flexibility. Use your available cash for other important investments.

When you sign the lease for your landscaping equipment you are provided with a single date of payment in the future for the equipment, in exchange of full use of it at present. This is a great advantage for a new business as there are bound to be cash constraints on them. You can instead use your working capital to buy other resources like transport facilities, raw materials and even labor. Leasing is a good way of preserving your cash.

Accounting for the leased items of you business becomes simpler since these items are treated as line items in the profit and loss accounts. This allows you to avoid confusing and heavy depreciation accounts. They are also usually recorded as pre-tax expenses of the venture and as such you could receive heavy tax benefits. Consult with a financial representative to find out more.

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