For your business to be as healthy as possible, keeping your cash flow high is king. Even if your business is showing great profits your cash flow may still be low. Most businesses finance their larger purchases such as trucks, trailers, manufacturing equipment, and property. Why not do the same when purchasing extra storage for your growing company. Whether to enhance more square footage to your current property or for better jobsite security. Leasing-To-Own your shipping containers a.k.a. conex boxes is a simple and easy way to keep your cash flow strong.

Now I’m not a CPA nor a tax expert but I’ve been using the Section 179 for years. IRS Tax Section 179 allows your businesses to deduct the price of shipping container you lease during the year. It essentially allows you to write off the total cost of the shipping container from your income.

The amount you save in taxes commonly exceeds the lease payments, which makes this very attractive to the bottom line.

The $1 Buyout Lease (Most Popular)

Use it like you own it. Also called a Capital Lease or Lease-To-Purchase where the lessee at the end of lease term owns the shipping container for $1 or 10% purchase agreement. Use this option to cover 100% of the purchase price, taxes, and shipping. Businesses often use this type of lease when they intend to keep the shipping container for an extended period set at the time of the lease issue. And it’s 100% deductible.

What’s a “True Lease” and why would this be better?

By adhering to a monthly payment schedule a True Lease gives you the option of purchasing the shipping container for fair market value when your lease has matured. At the end of your lease term, you have the choice of returning your leased conex box, continuing your current lease with a FMV renewal option, or purchasing the conex box you’re currently leasing at its fair market value.

The payments are typically lower than they are for a “Standard Long-Term Rental” and flexible payments are available, as well. For example, monthly adjustments may be made if you can afford to pay a little more or a little less each month. The entire cost of the shipping container can be financed, which means very little cash is needed up front. Leasing the shipping container you need, rather than purchasing it, frees up funds for other business expenses.

For more information about Lease-To-Own please contact me at andrew@conexking.com