Many business professionals give special consideration to purchasing and financing equipment at the end of the year. There are different reasons for this, but the response we typically hear is it lets them take advantage of tax benefits associated with Section 179. There are many other reasons to buy equipment at year-end.
While it’s true that with Section 179 business owners may be able to write off up to 100% of equipment purchases (even if they’re financed), there are a number of other reasons to consider expanding your office or business as the year winds down ...
Vendor Incentives & Specials – As the 4th quarter approaches, equipment vendors may offer special discounts or incentives to reduce inventory. This could be the perfect opportunity for you to get a great deal and save on taxes.
Year-End Quotas – The push is on for equipment sales representatives and resellers to meet year-end sales goals and quotas set by management or the manufacturer. That could mean big price breaks on in-stock equipment
Financing Incentives – Finance companies and other lenders are working to make equipment more affordable by offering financing incentives. Special financing options can mean lower payments or additional payment flexibility, including deferred payments.
Planning for Next Year – Many business owners set goals for growth in 2015. It’s important to evaluate where you stand versus those goals as the 4th quarter begins. If you’re not where you thought you’d be, there’s still time to make adjustments. Now is the time to alter growth plans, evaluate staffing and equipment needs, and set goals for next year.
Whether you’re considering buying equipment for tax reasons, year-end incentives, to meet planning goals, or a combination of all three, you should always talk to your accountant first. Then, when you’re ready to finance equipment, be sure to get the best deal possible for your business.
We invite you to call Professional Solutions Financial Services’ lease/loan comparison hotline to make sure you’re getting the financing terms most suited to your business needs.