12 Jul EQUIPMENT LEASING FOR LANDSCAPE COMPANIES
In most places throughout the country, landscaping companies are seasonal, with the bulk of the work happening from spring through fall. Maximize that period of opportunity by getting the equipment you need to work efficiently, while running a flexible acquisition process and getting quick access to funds.
How can you achieve all those things? The answer is equipment leasing.
Size Doesn’t Matter
Equipment leasing is preferable for many landscaping companies because your size is not a factor when applying. Both large companies focusing on commercial businesses who need heavy equipment like skid steers and small companies who simply need a trailer and turf equipment can qualify for equipment leasing.
Choose Between Operating or Financing Lease
You can take advantage of flexible terms when you choose equipment leasing for your landscape company. The first option is an operating lease. You get the option to purchase the equipment for a residual value when the term is over. Plus, you can typically use your payments as a deductible expense for tax purposes.
The second option is a financing lease for your landscaping equipment. You’re considered the owner of the equipment and you can list it as an asset on your balance sheet. At the end of the lease period, the title is transferred to your name. Tax benefits are there, but different from an operating lease in that the value may depreciate each year.
Depending on your plans and priority, you can choose which equipment lease makes the most sense for your company.
Don’t Hold on to Old Equipment
If you do choose an operating lease, you’ll benefit from returning the equipment at the end of the term, unless you choose to buy it back. One benefit of this type of leasing, however, is that you don’t have to worry about dealing with the equipment as it ages. It can be a hassle to sell old landscaping equipment or worse, use it until it stops working.
With so much flexibility available with equipment leasing, you can truly customize this kind of financing to meet the needs of your landscaping company. No matter your size or the amount of equipment you want to acquire, equipment leasing offers a wide range of benefits, both financially and for convenience.