Cost-effectiveness analysis is a tool used in several economic sectors. It measures how well different strategies will play out, depending on the decision that’s made. It is an option that’s sometimes used as an alternative to cost-benefit analysis. Cost-effectiveness analysis allows business people and governments to compare several different ways to solve a problem. They can see which outcome will be the most favorable. 
When it comes to acquiring business equipment, entrepreneurs have options. Many will go to a bank or credit union and seek out a traditional loan. This approach can be time-consuming and expensive. Usually, financial institutions want to see a large down payment. Their loans don’t make provisions for expenses like delivery or installation. Sometimes, it can take over two weeks to even find out their decision. ]
Equipment financing is different. There’s no down payment required. Approval takes only 24 hours. The financed amount covers all of the soft costs. Equipment financing can be approved for used equipment in good condition, not just new goods. That alone can greatly reduce overall costs. But the best benefit of equipment financing is related to section 179 of the IRS tax code.
Section 179 of the IRS tax code makes it possible for businesses to treat depreciable assets as expenses. In practical terms, this means that entrepreneurs can claim up to $1,000,000 in a given tax year based on the equipment they acquire. The condition that must be met to do this is to put the equipment into service during the year that it was acquired. This can mean a huge savings when compared with a loan from a financial institution. Typically, only the interest on a bank loan can be deducted.
At Alliance Leasing, we believe that we can help you be much more cost-effective with our approach to financing. We finance a whole range of equipment that’s used in many industries. If you need a backhoe, we can finance that. A conveyor, a bakery oven and even some business software can be financed. Whatever business you’re building, we’d love to help you. Contact us today.