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How
will leasing your equipment benefit you?
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.
Capital
Conservation
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.
Convenience
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your customer to acquire all of the equipment needed to meet current demands, rather than being forced to work with outdated or inferior equipment.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.
Avoid Obsolescence
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.
Tax Benefits 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.
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