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Why Lease?

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Why Lease? 

Make better use of your money.

  • No or little Down Payment.  Conventional loans usually require substantial down payments and often have restrictive loan covenants.   Leasing requires little or now down payment.    

  • Finance 100% of your costs!
    In most cases, the full cost of the equipment, plus the shipping, installation, training, consulting, software hardware and maintenance can be included in the lease. This spreads the cost out evenly over the term of the lease and frees your capital to work harder for you in other opportunities. 

  • Conservation of Capital. Money that could be used to buy inventory, advertising, and salary is better spent doing just that rather than purchasing equipment that depreciates. If you are in business where you have important alternative uses for money on hand, leasing is preferred when compared with a bank loan.    

  • Use of Equipment Leasing is the use of an asset.  Owning an asset does not equate to earning potential.  Companies do not pays salary in advance. Instead, they pay employees as they contribute.  Use of equipment should be no different.  Equipment leasing enables you to pay as you use.

  • Easier Cash Flow Forecasting. Equipment leasing, which is a fixed expenditure.  Since payments are fixed, future expenditures can be easily budgeted. 

 

Leasing Gives You More Control than Bank Loans.

  • Simplified Procedure. Equipment leasing programs and procedures are specially designed to take the red tape out of financing capital equipment for business.    

  • Greater Flexibility. Equipment leasing provides the lessee with greater flexibility. The equipment leasing can be tailored to fit the needs of the customer. This gives a lessee the opportunity to decide the number and amount of advance payment amount, purchase option etc.  

  • Control Payments. You can control the monthly payments on an equipment lease depending on the type of lease you choose.  This is a distinct advantage in times when many equipment financing transactions have floating interest rates. Knowing in advance what your payments will be enables you to budget & manage equipment dollars for a long time. As inflation increases, monthly payments remain the same. Bank credit lines remain intact for other needs.

  • Purchase or Renewal Options. Most equipment lease arrangements allow customers the option to purchase at the equipment at a stated amount or "fair market value", or to renew the lease at a reduced monthly payment. The lease structure determines which of the options is available.  

Avoid the risk of your equipment becoming obsolete!
Ownership forces you to run the risk that new technology will make your equipment obsolete within a few years, leaving you with equipment that no longer meets your needs. Leasing allows you to cost effectively upgrade your equipment to the latest technology thus keeping your business competitive.
 

Equipment Types.  These are just a few equipment-leasing options of what you can lease at low rates. Computer leasing, industrial leasing, machine tool leasing, fitness equipment leasing, software leasing, used equipment leasing, office equipment leasing, office furniture leasing, communications equipment leasing, construction equipment leasing, medical equipment leasing, rental equipment leasing, and much more!  

Tax advantages.
Depending on the structure of the lease, the entire monthly payment may be written off as a deduction over the whole term of the lease. 
Just as businesses have done for years, a lessee can usually deduct their monthly lease payment as an operating expense. This clearly reduces the new cost of the lease. It is always best to talk to your tax accountant. 

 

   

Lease vs. Loan  

Leasing Glossary

Why Lease ?  

Lease Application

Application Procedure

Back to Leasing Page

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Last modified: January 07, 2008