Benefits Of Leasing

Conserves Capital
If your money is not tied up in equipment costs, you're free to spend it on other items such as inventory, advertising, research & personnel.

Provides 100% Financing
Eliminate the need for a down payment - use the cash elsewhere in your company for expansion.

Enjoy Flexibility
Longer terms and lower payments can be structured to fit your budget. Leasing is the least restrictive form of financing today.

Tax Savings
Payments on qualifying leases are written off as direct operating expenses, reducing current taxable income. Avoid negative impact of the alternative minimum tax or mid-quarter depreciation penalties.

Enhanced Cash Flow
You pay only for the use of the asset, not its ownership. This allows easier cash flow forecasting.

Credit Diversification
Your bank lines are not burdened. Gives you leverage & leaves lines of bank credit undisturbed. Avoid restricting your ability to respond to opportunities and emergencies.

Off-Balance Sheet Source of Funds
Experience more liberal credit criteria as there is no disturbance of your current debt ratio. Improve ROE/ROA and other ratios so that you may improve your ability to acquire funds.

Fixed Payments
Lock in payments - facilitate financial planning with stable payment structure.

Less "Red Tape"
Additional equipment can be acquired without renegotiating existing loan covenants. Leasing is a fast, convenient alternative to borrowing or crossing your fingers and waiting for a windfall.

Protects Against Obsolescence
Avoid the risk of owning equipment that is no longer technologically useful or valuable.

Use Of Equipment
Cost-cutting profit-making equipment installed immediately. Access to the equipment you need when you need it in order for your business to grow. Pay as you use!

100% Cost Coverage
Most "soft" costs including insurance, maintenance taxes, training and installation shipping and software can be included in the lease.

Purchase/Renewal Options
At the end of your lease, you choose to purchase your equipment, upgrade to new equipment or continue to lease at substantial savings.

Avoid Capital Budgeting Constraints
Acquire needed equipment outside capital budget. Lease payments are usually paid out of operating budget. Therefore, creates or maintains working capital for putting cash into things that make a direct profit, such as inventory, A/R and other faster producing assets.




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