Equipment Leasing is Alive and Well in 2013
Equipment leasing is expected to remain and strong and continue to grow in 2013 with the recovery of the construction, manufacturing and mining industries.
By: Advantage Leasing Corporation
According to the Equipment Leasing & Finance Foundation, equipment leasing returned to pre-recession levels in 2012, and U.S. businesses and government agencies are expected to finance more than $742 billion in equipment acquisitions in 2013, according to the U.S. Equipment Finance Market Study 2012-2013.
In late 2012, business owners kept a close eye on what direction congress and the economy were going to take before making major capital investments in their businesses. Resolution of the fiscal cliff and upward growth in the economy leads to expectations of a strong market for equipment leasing.
In times of financial uncertainty, leasing industrial, transportation or construction equipment makes good financial sense, says Mike Elton, Director of Sales of Milwaukee-based Advantage Leasing Corporation. Leasing allows companies pay for equipment as they generate revenue, and frees up cash for other uses or business fluctuations. It’s also helpful for companies to have a fixed budget line-item every month, rather than having to budget or use up cash reserves for capital expenditures.
Equipment leasing companies can get companies the equipment they need at better rates than credit cards, and without the time and hassle of applying for a bank loan. For businesses, one of the major advantages of leasing is that lease payments can often be treated as a fully tax deductible expense. An online equipment lease calculator can help businesses quickly estimate the monthly payment for a desired purchase.
With the economic recovery underway, the need for equipment leasing is expected to grow in 2013, especially in the construction, transportation and mining industries.