There are really two main types of savings that a business will get when they choose
business equipment leasing: immediate and long-term.
First, instant savings come in the from not using your capital or credit.
Rather than spending tens of thousands of dollars to outfit an office, you instead
have a manageable monthly payment with business equipment leasing. You still
get everything you need, plus you don't tie up your credit or cash.
Second, long-term savings come in the way of annual tax benefits, and interest accrued
on the money you didn't have to spend.
Business equipment leasing also gives you the opportunity to be constantly updating
your old equipment. This means an immediate gain of having the very latest
technology, and a long term benefit of not having to worry about that same technology
becoming outdated. We all know how quickly technology improves, creating an
obsolescence risk whenever new technology is purchased. By using business
equipment leasing as a financing tool, you can be updating that technology every
couple of years, without having to worry about disposing of your out of date, depreciated
older technology.
A final important benefit is that business equipment leasing allows you to get what
you need now, rather than waiting for receivables and your cash flow to improve.
Having to buy equipment 'piecemeal' could damage your business operations, and give
your competitors an edge. Why take that risk, when a business equipment lease
can solve the problem?
Why Lease?
Better Value - Make better use of your money
* Conventional bank loans usually require more money upfront than leasing and often
have restrictive covenants.
* Conventional debt financing may require a 10-20% down payment.
* Leasing generally requires only one payment upfront, which are applied to your
future payments.
Finance 100% of your costs
In most cases, the full amount of the equipment, as well as the service, shipping,
installation costs and maintenance can be included in the lease. This spreads
the cost out evenly over the term of the lease freeing up your money to work harder
for you.
Realize significant tax savings
Monthly payments on operating leases are typically viewed as operating expenses
offering significant tax benefits. You should always consult with your financial
advisor to determine the most tax-beneficial lease for your company.
More Convenient
Speedy and easy
Most applications receive bids within two business days. This means that you
can acquire equipment now, so your business can focus on increasing revenues.
You can tailor a solution that meets your requirements
Leasing is flexible so that you can tailor the length and amount of your payments
to meet your business' needs.
* "step-up" leases allow you to start with low payments that increase over time
so you can concentrate on using the equipment to generate revenue.
* "skip" leases restrict payments to given months of the year so you can plan ahead
to cover the slow times.
* "deferred payment" leases allow a significant grace period before your first payment
is due.
* "master" leases offer a more convenient way to add more equipment to your existing
lease.
Greater Control
Avoid the risk of your equipment becoming obsolete
With ownership you run the risk that new technology will render your equipment obsolete
within a few years, leaving you with equipment that no longer meets your needs and
that is difficult to sell. Leasing allows you to replace or upgrade equipment
to keep your business competitive.
Improve your cash flow forecasting
The fixed nature of a lease obligation eliminates uncertainty about the future cost
of the equipment. Your lease payments facilitate more accurate forecasting
and planning.
No ownership dilution
Leasing allows you to increase the cash flow of your company without bringing in
investors to finance capital expenditures.