Why Lease My Equipment?
Leasing offers a number of advantages over other financing methods:
- Tax Treatment . An operating lease is not considered a purchase but rather a tax-deductible overhead expense. As a result, lease payments are considered corporate expenses according to the IRS.
- Balance Sheet Management. Since an operating lease is not considered a long-term liability, it does not appear on your financial statement. As a result, you remain more attractive to traditional lenders when the need arises.
- 100 Percent Financing. With leasing there is very little money spent upfront. Usually only one or two payments are due at the start of the lease. Since there is no down payment, it is equal to 100 percent financing. This gives you more money to invest in other areas of your business.
- Flexibility. As your business grows you can add or upgrade at any point during a lease term through adding schedules to a master lease agreement. You also have the ability to include installation, maintenance, sales taxes and other services in the lease.
- Customized Solutions. With the wide variety of leasing structures available, payments can be structured to meet your company's cash flow patterns. Leases can be structured to fit specific customer payment patterns, cyclical fluctuations or seasonal patterns in your business.
- Asset Management. A lease gives you use of equipment for a specific time at fixed payments. The lessor assumes and manages the risk of asset ownership. At the end of the lease term the lessor is responsible for disposing of the used equipment.
- Upgraded Technology. If you need the latest technology, a short term operating lease can help you obtain necessary equipment while conserving cash. This reduces the risk of being stuck with obsolete equipment in a rapidly changing technology environment.
- Speed. Leasing can get you the equipment necessary to respond to new opportunities quickly with minimal documentation and red tape. Depending on the size and term of the lease, many leasing companies can approve your request in less than a week.
- Improved Cash Forecasting. By leasing equipment you are not subject to fluctuations in interest rates. You have the certainty of knowing how much cash is needed to service the lease during its term.
- Flexible End of Term Options. There are several options at the end of a lease term. You can return the equipment, renew the lease or purchase the equipment once the initial lease as expired.
