Equipment Leasing Advantages
Equipment leasing offers the business owner several advantages over
other financing options. In my mind, the primary equipment leasing
advantage is the ability to acquire needed equipment while preserving cash and other
working capital credit lines. Equipment leasing also has the advantage of being
a cost effective way of keeping up with technology in our ever changing world.
As a result, 9 out of 10 businesses lease at least some of their equipment and
equipment leasing makes up for nearly a third of all capital equipment
purchases each year. In 2006, businesses used equipment leasing to acquire 270 billion
dollars of equipment.
100% Financing advantage
Your lease can include soft costs such as software, training, delivery,
sales tax, etc. These are generally not included with bank financing but are
often included in an equipment lease. Capital conservation is a big deal for
nearly every small business owner I have ever spoken with regardless of the
industry the business is in.
Minimal out of pocket costs advantage
No large down payment or cash deposit is required with your equipment lease.
Generally your first and last payment will be required to get your equipment
delivered. you may also want to consider the advantage of our
1% Leasing Solution.
End of lease flexibility
Equipment leasing allows you to take ownership of the equipment, upgrade it,
extend the lease, or simply return the equipment when the term is over.
Customized payments
Equipment lease payments can be structured to match your monthly or seasonal
cash flow or the economic life of the equipment. Equipment leasing also has the
advantage of longer terms and lower payments.
Maximize cash flow
Leasing lets you preserve your cash, working capital and bank lines for
operating expenses.
Tax advantages
Leasing may allow you to write off 100% of the payment as an operating
expense and allows you to pay with pre tax dollars rather than after tax profits
which can certainly help your bottom line. As always, consult your accountant
first.
Avoid technological obsolescence
The leasing company bears the risk of technological obsolescence, not you.
Upgrade provisions can be added in most cases to hedge against obsolescence.
Less Documentation
Most bank loans require significantly more financial information than a
typical lease. For even less documentation, you may want to consider our
Low Documentation Leasing
Programs.
"If it appreciates, buy it. If it depreciates or becomes obsolete, lease it!"
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for your Equipment
Leasing
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