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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.
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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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