Stay Tax-Efficient With Equipment Financing

Equipment financing enables businesses to thrive. With this kind of lending, companies are able to easily acquire goods that allow them to continue doing what they do best. There’s no credit score checking, and there’s no jargon about interest rates.[2] The funding we offer can be used to start, expand or adapt a business.[2] And equipment financing can be used for anything that a company needs to deliver goods and services to their customers.


At Alliance Leasing, we have over 30 years of experience helping businesses get access to the equipment they need. During that time, we’ve worked with clients from just about every industry. Hair salons, plumbers, security, sports: we’ve done it all.[1] Best of all, the type of financing we offer has big advantages for entrepreneurs. Under section 179 of the IRS tax code, it’s generally 100% deductible.[1][2]


A lot of businesses acquire new equipment via traditional bank business loans. When they do this, only the interest they pay back on the loan is tax deductible at the end of the year.[2] With our equipment financing agreement, 100% of the purchase price is able to be deducted.[2]  Our finance agreements are written differently than the ones offered at banks.[2] Our agreements always maximize the tax advantages for the borrower.[2] 


The requirements for the section 179 tax deduction are fairly simple.[1] The financed equipment must have been used by the business during the tax year.[1] The upper limit for the deduction is a generous $1 million.[1] When companies reach a spending threshold of $2 million, that deduction maxes out.[1][2] But for small and mid-sized businesses, this deduction is an incredible chance to save on their tax bills.


To some business owners, this deal sounds almost too good to be true. But a little analysis shows that it really benefits everybody. The government wants to incentivize people to work and make money. So they’ve offered perks that encourage people to be entrepreneurial. In fact, they doubled the deductible amount in 2017, from $500,000 to $1,000,000.[1] The more people who acquire and use equipment for businesses, the more productive the economy will be, and that’s good for everyone. 


In the context of our agreements, equipment often means something tangible like a press, a truck, or an oven. But business equipment includes intangible things like software. Contact us to find more about the types of equipment we can finance. We love to help people achieve their dreams.