Financial Benefits of Tax Leasing
Is it better to buy or lease business equipment? Check out this comparison infographic to help you decide.
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Should you lease or buy? See why:
Tax Leasing > Ownership
On balance, the benefits of tax leasing can add up.
Updating technology or replacing outdated equipment can give you a competitive edge. But before you sign a purchase agreement, consider the overall costs of ownership versus the total financial benefits of tax leasing.
|Tax Leasing Costs||Ownership Costs|
|Debt on balance sheet||
|Rates and taxes||
|Recurring financial benefits||
Tax Leasing Financial Impact
- Fewer reported assets on the balance sheet
- No debt on balance sheet
- Lower costs
- Fixed and predictable costs
- Better financial returns and measures
- Permanent financial benefits
- Staying current is less costly
= Altogether tax leasing can add up to:
- Less cost upfront
- Lower costs over time
- Lower interest rates—even negative effective interest rates
- A non-debt liability on the balance sheet
If you’re considering making a major technology or equipment upgrade, contact your Fifth Third equipment finance specialist, as well as your tax advisor, to explore how tax leasing could add benefits to your balance sheet.