Equipment Financing

If you run a business that requires specialized equipment, you know how expensive it can be to purchase it outright. That's why nearly 80% of US companies use some form of financing when acquiring equipment. But did you know that equipment financing can provide a smarter and more flexible solution? Reduce the burden of equipment acquisition by providing more predictability for your organization, allowing you to focus on growing your business.

As the preferred provider of equipment financing solutions, Intech Funding, part of Verdant Commercial Capital is ready to help you acquire the equipment you need today.

• Low or No Upfront Costs: Save your capital for other important expenses, such as hiring new employees, expanding your business, or investing in marketing efforts.
• Maintains Your Competitiveness: Stay current with the latest technology. When the lease term ends, you can choose to upgrade to newer, more advanced equipment.
• Quicker and Easier: If applying for a financed amount under $500,000, then you can expect a same-day response. Typically, turnaround times can be faster than other financing.
• More Flexible: Customize your payment schedule to fit your budget and cash flow or seasonal fluctuations.
• Possible Tax Advantages*: Your business may be able to deduct the cost of the lease payments as a business expense. Consult your tax advisor to learn more about your specific situation.

Section 179 was created to encourage small businesses to invest in their growth by providing tax deductions and accelerated depreciation on qualifying equipment purchases.

If you own a business, is important to understand the Section 179 Tax Deduction so that you can maximize tax savings. Unlike normal depreciation, the Section 179 Federal Tax Deduction allows a company to write off the entire purchase price of qualifying equipment for the current tax year (up to $1,220,000).

A Section 179 Federal Tax Deduction is limited to the company’s taxable income for the tax year that is derived from the company’s active conduct of any trade or business during that tax year. This deduction is particularly impactful for small businesses, as it can dramatically reduce tax liability and improve cash flow. Financing or leasing with a $1 buyout qualify.

Bonus depreciation allows qualifying businesses that spend more than the Section 179 limit to depreciate up to 60% on the remaining purchase amount. In addition to the Section 179 Federal Tax Deduction, after exceeding the $1,220,000 write-off, businesses can also take bonus depreciation on both new and used qualifying equipment in an amount equal to the bonus depreciation percentage for the tax year multiplied by the equipment’s depreciable basis.

The deadline to take advantage of the Section 179 deduction for the current year is December 31, which means all qualifying equipment must be purchased or financed, delivered, and put into service between January 1 and December 31 of the current year.

This Section 179 calculator provides estimated tax savings for illustrative purposes only and is not intended to provide any tax advice.