FREQUENTLY ASKED QUESTIONS

FREQUENTLY ASKED QUESTIONS

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  Question :
  Why shouldn't I just pay cash for the equipment?
 Answer :
 Paying cash for equipment is certainly a good option; however, in doing so, you will deplete your cash reserves and you will also forego potential tax benefits.*  Would you pay a worker two years in advance?  Of course not!  Then why do the same with your equipment?  Pay for the equipment as you use it…and let the income received from its use pay for the equipment.

*(One such advantage is that Lease payments are typically deductible as a monthly business expense.  Please consult your accountant or tax advisor for specific tax advantages that may or may not be available to you and your business through an equipment lease.)
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