If your money is not tied up in equipment costs, you're free to spend it on other items such as inventory, advertising, research & personnel.
Lock in payments - facilitate financial planning with stable payment structure.
Eliminate the need for a down payment - use the cash elsewhere in your company for expansion.
Additional equipment can be acquired without renegotiating existing loan covenants. Leasing is a fast, convenient alternative to borrowing or crossing your fingers and waiting for a windfall.
Longer terms, lower payments structured to fit your budget. Leasing is the least restrictive form of financing today.
Avoid the risk of owning equipment that is no longer technologically useful or valuable - let the lessor assume the risk.
Payments on qualifying leases are written off as direct operating expenses, reducing current taxable income. Avoid negative impact of the alternative minimum tax or mid-quarter depreciation penalties.
Cost-cutting profit-making equipment installed immediately. Access to the equipment you need. When you need it, in order for your business to grow and prosper. Pay as you use!
You pay only for the use of the asset, not its ownership. This makes for easier cash flow forecasting.
All "soft" costs including insurance, maintenance taxes, training and installation shipping and software-right in the lease.
Your bank lines are not burdened. Gives you leverage - leaving normal lines of bank credit undisturbed. Avoid restricting your ability to respond to opportunities and emergencies.
At the end of your lease, you choose to purchase your equipment, upgrade to new equipment or continue to lease at substantial savings.
Experience more liberal credit criteria as there is no disturbance of your current debt ratio. Improve ROE/ROA and other ratios so that you may improve your ability to acquire funds.
Acquire needed equipment outside capital budget. Lease payments are usually paid out of operating budget. Therefore, creates or maintains working capital for putting cash into things that make a direct profit, such as inventory, A/R and other faster producing assets.
|What type of equipment can be leased?|