Why Lease ?

Leasing Conserves Working Capital:
Leasing eases the strain on working capital by providing 100% financing. It converts a large potential cash drain into a low, affordable, possibly tax-deductible monthly payment. This leaves precious cash available to take advantage of early-payment discounts, discounted bulk purchases, acquisitions, etc.

Leasing Lets Productive Assets Self-Finance:
Because leasing involves payment over time and the assets being financed are either producing income or reducing expenses, those same assets generate the cash needed to make the lease payments. This is the classic benefit which has sustained the leasing industry over centuries. An inflationary environment provides the additional benefit of allowing payments to be made with depreciated dollars.

Leasing Conserves Credit Lines:
Leasing permits the acquisition of depreciable assets without reducing either cash liquidity or available credit lines. Thus using leasing to acquire operating assets conserves the credit lines that will finance the inventory and receivables supporting those assets.

Leasing Provides 100% Financing:
Unlike many bank loans, leasing requires no down payment. Taxes, delivery, installation and other soft costs can be included in the lease total. With a lease, your up-front expense is typically limited to one or two monthly lease payments.

Leasing Provides a Comprehensive Financing Option:
Businesses acquiring equipment from a number of sources often use leasing to consolidate all those different items into a single lease with one monthly payment. This is common when companies relocate and consequently acquire new furniture and office equipment from a number of different vendors.

Leasing is Convenient:
Acquiring a lease is often easier than using other financing sources, especially SBA loans. Qualification for lease amounts under $100,000 can often be achieved by just the completion of a 1 page credit application. Larger leases require full financial packages, but decisions are usually rendered in 1 to 2 weeks.

Leasing Means Fixed Rates:
Lease rates almost always fix when the lease begins thus protecting the lessee from inflation risk. In an inflationary environment, the lessee has the benefit of acquiring equipment at current prices and paying for it with tomorrow's depreciated dollars.

Leasing Facilitates budgeting:
Because payments are fixed, they can be accurately projected over the term of the lease.

Leasing May Overcome Budget Limitations:
When immediately desired equipment cannot be accommodated in a company's current capital budget, it often can be acquired through a lease which impacts only the operating budget.

Leasing May Provide Tax Benefits:
Lease rental payments are made from pre-tax rather than after-tax earnings. Leases can be structured so lease payments are fully deductible. The cost of leasing is a business expense, and is therefore tax deductible for the life of the lease. This is usually shorter than the normally allowable depreciation schedule, thus providing a faster write-off. In most cases, the tax benefits of a lease transaction are more beneficial to a company than an outright purchase.

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