Benefits of Truck Leasing For Your Business
Benefits of Truck Leasing For Your Business
When you have decided to pursue your own transport business, it is natural to feel conflicted about whether to buy a truck or lease it. Especially when you see how many well-equipped truck options are out there in the market. But when it comes to trucks, it’s important to think realistically and long-term. Many a time, truck leasing is beneficial in more ways than owning your own fleet.
Leasing a truck will not only help your business but also can save you a lot of effort and time in other operational aspects such as reduced costs, flexibility and convenience.
Financial flexibility: If you are a new business owner or someone who’s still in the initial stages of business, leasing offers you a lot of financial flexibility. Buying a truck will cost you a sizeable amount of money and most probably a loan. But when you are leasing, you do not need to worry about the capital or any other investments that would require a lot of money immediately. The leasing payments are lower than loan payments and you can use the money you have for promoting your business or any other way you want. You might also be able to afford a couple of trucks initially if you are leasing and this will also help you expand your business in no time.
You don’t have to worry about bad credit: If you are a person with bad credit or if your business credit is damaged, traditional financial institutions and banks might not offer you a loan, or a good loan amount. This will require you to drain your finances for business operations and will also cause damage to your credit rating. But when you are leasing a truck, you do not have to worry about these things and can focus on just the leasing amount and whatever finances needed for your business.
Tax benefits: Did you know that monthly lease payments are tax-deductible? These will be deducted as a business expense to a certain limit. You’ll have to consult with a truck leasing expert to know more about the leasing amount limit and other criteria for the tax deduction.
Upgrade flexibility: The usual leasing options range from two to four years and comes with all the warranties so that you don’t have to worry about them for the lease duration. You can use the truck to the full capability during the lease and then switch to a newer model with better technology once the lease is over. Well sure, you may be thinking that this is possible with buying a truck too right? But the advantage here is that you don’t have to worry about selling your old truck or buying a new one.
Even though it’s true that purchasing a truck is like having an asset, you should consider all the other costs and functional difficulties that come with it. When you are starting a business or in the initial stages, it’s always a burden to purchase a truck, while leasing gives you flexibility.
Give the experts of CIK Capital a call to learn more about truck leasing services in Toronto.
