| Improved Cash Flow
By leasing equipment, a lessee (you, the customer) can avoid spending a large portion of their budget all at once. Leasing the equipment enables you to use your budget for income-producing areas within the company surch as inventory, employees, advertising, etc.
Fixed Rate Financing
Unlike bank loans, monthly lease payments are fixed throughout the term of a
lease. Bank loans can have variable rates of interest. You will know your monthly
payment upfront, which allows you protection against inflationary increases.
Preserved Credit Sources
In today’s financing market, all companies have a limited borrowing
so you must have fiscal responsibility when choosing new equipment.
preserves your existing lines of credit for use toward other business opportunities.
By making your monthly payment, you also build your credit rating!
Protection Against Obsolete Equipment
Worried about technology making your equipment obsolete? With leasing,
pay for using the equipment, which provides the flexibility of trading up to
equipment to keep pace with the latest products.
At lease termination, you also can return the old equipment and acquire
equipment without the worries of ‘being stuck’ with the older equipment!
More Equipment With More Features
Your monthly lease payments are smaller payments made over a period of time,
so you can acquire more equipment with more features. Instead of one large
upfront payment to purchase one piece of equipment, you now can fit more equipment
to better suit your needs through a monthly payment without the large sum
affecting your budget.
Pay As You Go
Businesses pay employees on a continual basis – as the employees contribute to
the company. In the same way, leasing enables you to pay for the equipment as
you use it, rather than paying for it all at once.
Tax Advantages
Leasing offers your customers the possibility of deducting their entire monthly
lease payment as an operating expense. Check with your tax consultant.
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