Leasing Conserves Capital
Leasing eases the strain on working capital by providing 100% financing. This means that you have more money available to invest in Profit Generating activities. It converts a large cash sale price into a low, affordable, tax-deductible monthly payment. Rather than tying up your bank line of credit, or using cash operating funds, Leasing allows an additional line of credit.
If it appreciates, buy it. If it depreciates, lease it. Traditional bank lines are perfect for running the day-to-day operations of a business but not for funding long-term equipment acquisitions. Leasing provides an alternate source of credit and financing more suited for depreciating technology assets. Don't invest in depreciation.
Conserve Credit Lines
Leasing does not weaken your borrowing power because money has not been borrowed. Lease and your existing credit line remain healthy and available for the unforeseen.
Leasing Provides Total Financing
Leasing offers 100% financing, and unlike a bank loan, requires no down payment. Taxes, delivery, service contracts and other soft costs not typically financed by a bank can be included in the cost of the lease. One or two payments in advance are usually all that is required. Equipment Leasing offers 100% Financing and more liberal terms than purchase. The Equipment pays for itself with the profits it generates. 100% financing for New & Used equipment.
Simpler, more flexible documentation. 100% financing. Think leasing to your company should be a convenience? Can't understand how decisions can take so long? They don't have to. Certain Expenses such as Installation , Freight, and sales tax may be included in a lease. Generally these items are not financed with conventional Borrowing.
Fixed rate lease payments
No variable interest rates here. Fixed payments enable a lessee to more accurately predict equipment costs and cash needs.
Leasing Overcomes Budget Limitations and Guards Against Obsolescence
Lease payments are often lower than purchase installments, making the most of your current budgets. This allows your customer to acquire all of the equipment needed to meet current demands, rather than being forced to work with outdated or inferior equipment.
Overcome Budget Limitations
Your budget allows the purchase of only what you absolutely require ... not what your really want and need? Ask how leasing can stretch budgeted dollars to acquire the quality and quantity you really need.
Buying promotes keeping equipment far beyond its useful life. Out-dated equipment is often shuttled downstream or stored away until it is less than worthless (sold for less than the costs of selling). Equipment leasing protects your company from having to keep obsolete equipment. Trade-in, add-on and upgrade capabilities, allow you to make the needed adjustments as your business grows. Control secondary market; offer the ability to up-grade and trade-in.
Leasing's built-in termination date, the lease term, can be synchronized with equipment's productive life. At end of lease, new equipment arrives and out-dated equipment is shipped out.
Leasing Lessens the Impact of Inflation
Through leasing, you can offset inflation with fixed lease payments. You can acquire the equipment you need at today's prices, and pay for it with tomorrow's, less valuable dollars. The monthly payment may be 100% tax deductible as an operating expense.
Lease rental payments are made from pre-tax rather than after-tax earnings. Lease payments may be fully deductible, consult your accountant. The cost of Leasing is a business expense, and is therefore Tax Deductible for the life of the lease. This is usually shorter than the normally allowable depreciation schedule. In most cases, tax benefits of a lease transaction are more beneficial to a company than an outright purchase.
What can be leased?
Are you looking to grow your business? If so, equipment leasing is a step in the right direction! As seen in the list below, virtually any type of equipment can be leased.
Home Health Care
Marine Equipment Manufacturing Equipment
Semi Trucks & Trailers