ADVANTAGES OF EQUIPMENT LEASING

Conserves Cash Flow: Leasing allows affordable monthly payments. Your monthly lease payment is usually always lower than the cash “down payment” required by other methods of financing. You can actually afford more of the best with leasing.

Preserves Bank Credit Lines: Your bank credit lines can be saved for expansion, cash or other needs. You can preserve the credit line borrowing power for other business opportunities. Leasing is an additional financing resource. Your lease will not affect your bank credit lines.

Overcome Budget Limitations: By providing the vital equipment, within budget, and assigning the cost to a specific project.

Conserves Capital: Where other types of financing require a hefty down payment, leasing provides 100% financing. The equipment goes to work for you immediately with minimal up front costs and low payments.

Protects Equipment From Obsolescence: Technology changes. Trade-in, add-on, and upgrade capabilities allow you to make the needed adjustments for your business needs. Also, more than one vendor may be processed on a single lease agreement.

Leasing Enables You To Avoid Common “Bank Restrictions”: Many leasing programs avoid restrictions frequently found in loan agreements such as compensating balances or pledge of assets as additional collateral.

Hedge Against Inflation: Equipment leased today will be repaid with inflated dollars in the future. Also lease payments are fixed; therefore, unaffected by changes in the market.

Non-Financeable Costs: Leasing gives you more than just the equipment. It can cover the “soft” costs such as installation, sales tax, training and delivery. Your lease includes everything it takes to actually put the equipment to work for you. Generally these items are not financed with conventional borrowing.

Tax Advantages: Depending on the option at maturity, you can expense 100% of the monthly lease payments or capitalize and depreciate the equipment. Consult your accountant for further information.

Simplify Accounting: Lease payments can actually be treated as a pre-tax business expense and such may reduce your taxes. Lease payments are little more than a line item in your monthly cost of operations - a minimal bookkeeping effort that frees you from time consuming depreciation schedules.

Leasing Is Good Business Sense: A properly tailored lease program gives you the benefit of having the equipment you need with less risk of financial pressures. Leasing minimizes demands on cash flow, freeing those dollars for other needs. Leasing eliminates investing in obsolescence, keeping today’s most advance equipment at work in your business. Use leasing to afford the latest and best equipment to do a faster, better, and less expensive job than your competition.