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THE BENEFITS OF LEASE FINANCING
Lease financing is a cost-effective way to acquire the tools you need to run your organization without making a large up-front investment. While purchasing equipment can drain your company’s cash reserves, lease financing allows you to use your funds for other important business needs.
- LEASING CONSERVES CAPITAL:
We live in a world where demands on working capital always seem to exceed supply. By providing 100% financing, leasing allows you to have more money available to put into profit-generating activities.
- LEASING PROVIDES TAX-TIMING ADVANTAGES
Lease payments are normally treated as a fully deductible operating expense for tax purposes. In addition, since the lease term is often shorter than the depreciable life for tax purposes, a lease can enable you to expense the system more rapidly than a purchase.
- LEASING PROVIDES AN ALTERNATE SOURCE OF CREDIT
Leasing provides you with an additional source of financing. Unlike most bank loans which require 20% to 30% down, leasing offers financing for 100% of the system cost. Furthermore, leasing does not impact your bank line of credit - the existing line remains intact for essential short-term needs.
- LEASING MEANS SYSTEM FLEXIBILITY
As your businesses grows and changes, you may need increased capabilities or additional accessories. Leasing allows you to add to or trade-up equipment at any point during the lease term.
- LEASING LESSENS THE IMPACT OF INFLATION
Inflation is a fact of life; every year the purchasing power of the dollar declines in value. By leasing, you get the solution you need at today's prices and pay for it with tomorrow's cheaper dollars.
- LEASE PAYMENTS ARE FIXED PAYMENTS
Since lease payments are fixed, leasing lets you plan ahead with the assurance that your monthly payments will not change. With revolving bank loans, payments can change depending upon credit strength and / or prevailing interest rates.
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