Key benefits to leasing:
- 100% financing — No
down-payment means your equipment needs are met without
delay
- Low, easy-to-handle payments — Improve
your working capital and preserve your line-of-credit with
no heavy cash outlay or loan payment to affect your borrowing
power
- Tax benefits — Leasing is considered an operating expense and in most cases you can write off 100% of your payments.
- Easy budgeting — Bookkeeping
is simplified with one monthly or quarterly fixed payment
- Flexible financing — The
length of your lease, its terms, and payment schedule can
be customized to match your cash flow
- Protection from obsolescence — Expand
or upgrade your equipment with minimal adjustments to your
monthly payments
Let your equipment pay for itself
Leasing provides you with the use of equipment for an agreed upon payment. You pay for equipment as it is being used to generate revenue rather than cash upfront. This helps maximize the matching of income to investment.
Tax Advantages
Lease Payments may be fully deductible as a business expense. Leasing can also help you avoid Alternative Minimum Tax (AMT) liability.
Minimize Balance Sheet Liabilities
Lease payments may be eligible for "off-balance sheet" treatment, where items are treated as expenses rather than Assets and Liabilities, improving financial ratios.
Finance "Soft Costs"
You may be able to include some or all of the expenses associated with equipment use, such as shipping, installation, or maintenance, into the lease agreement.
Preserve Lines of Credit
Leasing will not tie up valuable lines of credit you may need for expenses or to fuel growth and expansion.
Flexible Payment Options
Leasing allows you to design payment structures to meet budgetary requirements or seasonal cash flows. Lease terms can range from 12 to 60 months with flexible renewal options.
Flexible End-of-Lease Options
At the end of your lease, you can purchase the equipment according to the predetermined purchase option, upgrade to new equipment, renew the lease at substantial savings. |
