Leasing equipment can benefit your cleaning program

Leasing cleaning machines can be a smart solution for facility managers looking to improve their cleaning program without breaking the budget. With equipment leasing, you can replace outdated and worn-out machines in the short term. Understanding your options is the first step in making a lease or buy decision. In this article, we will expand on the benefits of leasing so you can make an informed decision.

Benefits of Cleaning Equipment Leasing

Benefit #1 - Use the lease to help grow your business

Cleaning machine leasing is a versatile solution providing facility managers with numerous benefits and advantages over traditional equipment financing. One of the major benefits of leasing is the ability to use the lease to help grow your business. Here's how:

• Preserve working capital: Leasing cleaning machines allows managers to preserve their working capital for other essential business needs. Instead of tying up funds in equipment purchases, leasing offers the opportunity to make smaller monthly lease payments more manageable for the budget. This means that facility managers can allocate their working capital towards business expansion, marketing efforts, or hiring additional staff, all of which can contribute to the growth of their business.
• Access to top-of-the-line equipment: Leasing allows managers to use the latest and most advanced cleaning machine models without needing upfront costs. This means that they can leverage cutting-edge technology to improve the efficiency and effectiveness of their cleaning operations, which in turn can lead to increased productivity and customer satisfaction. Staying up-to-date with the latest equipment can give facility managers a competitive edge in the cleaning industry and help drive business growth.

Leasing cleaning machines offers facility managers the opportunity to use the lease as a tool to help grow their business. By preserving working capital, accessing top-of-the-line equipment, and having the flexibility to upgrade, leasing provides a cost-effective and flexible solution that can contribute to business growth and success.

Benefit #2 - Budget for a fixed expense in your cleaning program

Leasing cleaning equipment significantly benefits managers by allowing them to budget for a fixed expense in their cleaning program. With fixed lease payments, business owners can plan their finances more effectively and avoid unexpected expenses. This predictable financial commitment eliminates the need for large upfront costs typically associated with equipment purchases, making it a more manageable option for businesses.

Leasing terms may incorporate maintenance costs. By including a preventive maintenance program in your lease agreement, you can have consistent expenses for machine maintenance in addition to the equipment's purchase cost.

Benefit #3 - Flexible terms and down payments to work with your plans

One of the critical considerations when acquiring cleaning machines is the financial aspect. Cleaning equipment leasing offers flexible terms and down payments that can be tailored to your specific business needs and plans. Here are some of the benefits of these flexible options:

• Tailored to your needs: With a cleaning equipment lease, you can choose terms that align with your business goals. Whether you need a short-term lease for a specific project or a long-term lease to meet ongoing cleaning needs, you can customize the lease duration to suit your requirements.
• Variable down payments: Leasing allows you to adjust the down payment amount based on your budget and cash flow. Some lease programs offer low or even zero-down payment options, allowing you to conserve capital and allocate financial resources to other critical areas of your business.
• Lease-type options: Cleaning equipment leases come in various forms, including Fair Market Value (FMV) leases, $1 purchase option leases, and 10% purchase option leases. Each option carries different considerations, such as the length of the lease, ownership transfer at the end of the lease term, and the overall cost of the machines. These options provide the flexibility to choose the one that aligns with your financial strategy.
• Deferred Payment Options: Some lease programs may offer the advantage of deferring payments until the equipment is received, giving you time to generate revenue from the equipment before the lease payments begin. This can be particularly advantageous if you need time to set up operations or wait for a project to generate income.

Flexible terms and down payments in cleaning machine leases enable you to work within your financial plans and allocate resources more efficiently. By customizing the lease duration and down payment amount and choosing the right lease option, you can optimize your financial strategy while accessing the necessary machines to enhance your cleaning operations.

Benefit #4 - You may qualify for a tax break under IRS Section 179

One of the significant advantages of leasing cleaning equipment is the potential tax break it can provide through IRS Section 179. This provision allows business owners to deduct the total cost of the machines in the first year of use rather than spreading it out over several years. Here's how it works:

• Equipment deduction: When you lease cleaning machines, the lease payments can be fully deductible, up to a certain limit, under IRS Section 179. This means that you can deduct the entire cost of the lease payments in the year the equipment is placed in service.
• Depreciation deduction: Besides the lease payments, the IRS allows business owners to deduct the depreciation of equipment owned for a few years. This depreciation deduction can help offset the costs of owning and maintaining the machines.
• Increased cash flow: By taking advantage of the tax break offered by IRS Section 179, leasing cleaning equipment can help free up cash flow for other essential business expenses. This can be particularly beneficial for small to medium-sized businesses that must conserve capital and allocate financial resources wisely.

Leasing cleaning equipment can provide a significant tax break under IRS Section 179. By deducting the total cost of the machines in the first year, you can save money and increase your cash flow. Your eligibility for this program will depend on your specific financial situation. You should consult a qualified tax professional about your eligibility for this program before making a leasing decision.

Hillyard can help you understand your options

When acquiring cleaning machines for your facility, equipment financing can be a convenient and cost-effective solution. If you're considering leasing cleaning equipment for your facility, your local Hillyard representative can help you understand your options and quote a monthly payment tailored to your needs.

Hillyard has access to various leasing programs through our preferred financing company, First Western Equipment Finance, that offer different down payments and lease term lengths. This means they can help you find a leasing option that suits your budget and aligns with your business goals.

One of the key advantages of working with Hillyard for your leasing needs is their expertise and knowledge in the cleaning industry. They understand the unique requirements and challenges that facility managers face when acquiring cleaning equipment. You can benefit from their extensive experience and access to high-quality cleaning equipment by partnering with Hillyard.

To explore your leasing options and get a quote for a monthly payment, reach out to your local Hillyard representative today. They can guide you through the leasing process, answer any questions, and ensure that you have the right cleaning machines to keep your facility clean and well-maintained. Use the "I'm Interested" form at the bottom of this page and one of our representatives will contact you.