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Why Lease Equipment?
Conserve Capital:
You conserve your capital with 100% financing. If you invest the
conserved capital in your business and compound the earnings, you offset a
substantial portion of the leased payment.
100% financing allows you to
include maintenance/service contracts, freight, installation and other related
services into the finance amount. Rather than tying up your bank line of credit
or using other operating funds, with leasing you have established an additional
line of credit.
Inflation Can Work For You:
You make inflation work for you not against you by paying with tomorrow's progressively
less valuable dollars. If you buy with today's dollars, the tax dollars you
recover tomorrow through depreciation are progressively less useful to
you.
Provides a hedge against
inflation. New and up to date equipment is obtained today and paid for with
tomorrow's dollar.
Expand your budget by
freeing capital funds to build inventory, add space or personnel, or enlarge
your business.
Level Payments:
Monthly payments
on a lease are generally fixed for the entire term of the lease. This enables
you to budget and manage equipment dollars for the months and years
ahead.
Through leasing you also
protect yourself from fluctuations in the money market. Since most leases are
quoted at fixed rates, the payment remains the same throughout the term of the
lease. Planning for future growth and development becomes more
practical.
Tax benefits can make
leasing attractive: Over the length of the lease, the tax savings pay for the
lease financing. : Depreciation benefits enable you to deduct rental payments as
regular operating expenses. Therefore, if you are subject to the alternative
minimum tax, you can benefit because the lease payments are not considered as
tax preference items. Leasing is cash flow management: Leasing keeps your
lines of credit open.Credit is not tied up in equipment that could be used for
other investments, working capital, short term needs or as a reserve for the
future. In addition, it allows you to avoid costly down payments. Other
advantages include off-balance sheet financing. Leasing helps to better manage
your assets and liabilities.
Leasing adds Flexibility:
Do you have an irregular stream of income? Your business conditions, cash flow, equipment needs
and tax situation dictates the terms and conditions of your lease. Regardless of
the current interest rate environment, you will be able to acquire
equipment.
Leasing is protection against equipment obsolescence:
Are you exhausted of working with obsolete equipment? Leasing allows you
to return the equipment or secure an upgrade at the end of the term.
Furthermore, your equipment needs may change over time due to expansion.
Leasing allows you to keep your options open.
Leasing is convenience in equipment management:
By leasing, you transfer the uncertainties of
asset management, which allows you to concentrate on making the asset a
productive part of your business.
Leasing can overcome budget limitations:
Do you have a capital expenditure budget that has no room
for the purchase of new equipment, but an operating budget that has plenty of
room for low monthly lease payments. For as little as the first and last monthly
payments, you can start using your equipment.
Leasing allows you to obtain the equipment you need:
Why should you have to wait to gain the
additional profits and benefits of your equipment? With a lease you pay for the
equipment as you use it.
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