FAQ: Are there tax advantages to leasing?
Answer
Put simply, the cost of cash is usually higher than the rate of debt. We agree the prospect of avoiding interest and financing charges by paying cash is attractive. But cash isn’t free. It’s a limited asset, and there may be better ways to use it than tying it up in a depreciating asset like technical RVI and NDT equipment.
In today’s challenging economy, keeping cash on hand makes it easier to seize a business opportunity before your competitor can arrange to finance, or to weather a downturn that cripples your competition. By spending cash on equipment, you can also lose the tax advantages and residual-value benefits that leasing provides – the amount the lessor can expect to recover by selling the asset after the lease ends.
Ultimately, having cash on hand to invest in your business provides far great flexibility to adapt to market conditions and seize opportunities to grow your business. This in turn can provide returns that are greater than the interest rate of a lease.
Jason De Silveira, founder and CEO of Nexxis Technology, has always had a sharp focus on robotics, education, and real-world solutions. Throughout his career, he’s stayed committed to pushing the boundaries of robotics and helping industries strengthen their approach to asset integrity and robotic inspection.
With a background in operations, commissioning, and start-ups of new facilities, Jason leads Nexxis with a hands-on understanding of what real projects demand. Under his leadership, Nexxis has become known for developing innovative robotic systems that deliver better data, boost safety, and take the risks out of confined space and working-at-height inspections.
What makes Jason stand out? A passion for innovation, a proven ability to bring people together, and a genuine drive to help clients get the right solution — not just an off-the-shelf fix. With a strong focus on customisation and future-ready technology, he’s helping to shape the next generation of robotics.
