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Why leasing might make sense for your operation—and your cash flow.

Dec 11, 2017, 12:58 PM

Many customers are looking at ways to incorporate the benefits of new equipment and technology into their operations, but the cost of buying new equipment—especially in today’s environment of tight margins and lines of credit—can lead one to seek alternatives.

Leasing or renting equipment are viable options. The tax implications of leasing or renting are the same. There is no liability on your balance sheet—and both options provide cash flow flexibility.

However, leasing provides some significant benefits that are worth considering, especially in today’s challenging environment.

Leasing provides you with a locked-in payment for multiple years, unlike rental rates which can change frequently. With a lease, you know what your costs are and you can manage your operation accordingly.

When you lease equipment from 21st Century Equipment, you have that equipment available to you when you need it—all year long, not just for a specific rental period.

With leasing, you’re not tied to a volatile and unpredictable used equipment market. When your lease is up, you have the option of turning in the equipment and leasing something else—or purchasing the equipment you’ve been leasing. There’s no risk of finding yourself upside down in terms of the residual value of your equipment.

Here’s another caveat: When you’re renting equipment, the dealership may also continue to offer that equipment for sale. If this is a piece of equipment you depend on, leasing prevents the possibility that the dealership will come to retrieve that equipment for a buying customer.

At 21st Century Equipment, we can arrange an affordable leasing program on virtually any type of equipment—from a compact utility tractor or John Deere Gator up to a 600 horsepower John Deere tractor; from tillage equipment to a planter; from a grain cart to a combine. A typical lease is two to five years in length. In most cases, you’re leasing equipment that is new—or used equipment that has been reconditioned.

Contact us to discover more about our affordable leasing programs that help you enjoy the benefits of today’s technology and engineering while improving your cash flow and flexibility over the long term.

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