If your business is doing well, and is now in need of additional working capital you may consider the path to your Business Banker’s door to establish or extend existing bank funding, but have you considered selling and leasing back existing business equipment?
If, prior to the recession you purchased new hardware for your business outright, only to find that now, a better decision would have been to distribute the cost of your equipment over its useful life – a finance company may prove to be a better choice than your Bank to obtain that extra capital as:
• There is no requirement for a GSA/Debenture over your company.
• Payments can be fully deductible for tax purposes – no requirement to depreciate equipment.
• There is no impact on existing bank facilities or lines of credit, and importantly.
• The process is quick and simple.
UHY Haines Norton can provide you with specific advice on the tax benefits surrounding a decision like this.