For companies in the landscaping and snow removal business, it’s important to stay ahead of the upcoming winter and spring seasons. That’s why September is the perfect month to take stock of your equipment needs and financing options. The proper financing is essential to getting the equipment you need, but since many companies in this sector are relatively small, this can be one of the most intimidating parts of managing your business. Leasing your seasonal equipment is a smart way to simplify a challenging process.
In the landscaping and snow removal industries, leasing equipment enables business owners to:
- Conserve their cash. Those who lease can budget their equipment costs over the term of a lease instead of spending that cash up front.
- Save on income taxes. Depending on the type of lease, owners may be able to take advantage of exemptions and deductions.
- Replace equipment more Leasing companies often provide upgraded machinery and vehicles at far more affordable rates than constantly buying them as the industry changes.
- Preserve their bank lines of credit. Leasing can lower up-front equipment costs, letting you save your credit for other important investments.
- Refinance existing equipment. Business owners who lease gain the opportunity to free up capital that can be used to expand their business.
What You’ll Need
Before lessors make financing decisions on equipment leasing, they’ll need to have a clear understanding of your business’s financial health, as well as how the equipment will be used. Information they may ask for can include:
- Background on your company.
- The conditions of the work environment in which the equipment will be used.
- The average hours of use for the equipment throughout the year.
- Any details on equipment trade-ins or down payments.
If the price of your equipment exceeds a certain threshold, you may need to provide a report summarizing your company’s current financial position, often referred to as a financial statement. That’s why landscaping and snow removal professionals shouldn’t wait until peak season hits to review and manage their equipment financing.
With 120 years of combined experience, the executive team at Madison Capital will ensure that your financial plan maximizes your profit for years to come. Contact us today to get started.