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How Trucking Companies Can Benefit From Leasing

The trucking business is very competitive, and it can be profitable if you manage your business well. There are a number of ways you can get the truck equipment you need, but the sales person at the dealership may not present the best option for you. As a small business owner of a trucking company, you need to do your homework when you are looking for truck equipment financing. You may find that benefits of leasing a truck make sense for your situation.

Truck equipment leasing will free up cash that you can use for other purposes. When you lease a truck, you won’t have the initial outlay of money that you would if you purchased the truck because you won’t have a down payment. With truck equipment financing, you will build credit for when you need it. A lease generally is easier to obtain, and it isn’t as long term as a loan.

Leasing over buying offers you up-to-date equipment with more options. When you borrow money for your purchase, you have to qualify for a much larger amount to get the state-of-the-art trucking equipment that is sustainable and reliable. A purchase will have to stay in service much longer to pay for itself. Leasing opens up more possibilities. When you have the best equipment that saves fuel and keeps your drivers more productive, you see even more savings at the end of the year.

Your company won’t take the huge hit on depreciation when you lease over buying new. You have better asset management with leasing. A lease may also have lower payments than traditional truck equipment financing. You may need to do some research to find the best options for your company, but it will pay off in the long run.

Leasing may also help you keep more money from the government. Thanks to new growth stimulus plans, your business could qualify for tax breaks when you lease equipment. You will want to check with your tax specialist to see how much you can save with this hidden benefit.

Staying competitive in this market means that you have to think long-term about your assets. With technology continually changing, you need to consider the benefits of leasing over buying equipment that you need to maintain for many more years just to break even. As a small business, you need to take whatever breaks you can to keep up with larger companies who can negotiate for discounts because of their buying power. Leasing gives your small business flexibility to meet demand and change with the times.