Why Lease

Equipment leasing is an essential tool to help your organization acquire equipment.

In many cases, you can include the full cost of the equipment, as well as the service, shipping, installation costs and maintenance in the lease. This spreads the cost out evenly over the term of the lease freeing up cash flow for other vital business expenses.

Leasing offers numerous advantages over other financing methods:

Free Up Capital:

Leases allow you to retain capital strength by allowing you to buy the equipment you need today while spreading out your payments throughout the life of your equipment.

Balance Sheet Management:

A lease is not considered a long-term debt or liability, and therefore does not appear as debt on your financial statement, making your company more attractive to investors. Since payments are treated as operating expenses on the company’s balance sheet, they do not have to be depreciated over the life of the equipment.

Avoid Obsolescence:

With today’s rapid technological innovation, leasing provides a company with the means to keep up with the pace of technology. Since you’re free to upgrade or add equipment, you lower your risk of getting caught with obsolete equipment.

Flexibility:

As your business grows and your needs change, you can add to or upgrade your lease at any point through add-on leases or master leases. There are a number of leasing structures available to allow you to tailor the lease that best accommodates your needs and requirements, including: cash flows, budget, transaction structure, and seasonal or cyclical fluctuations. Many leases also offer a great deal of end-of-term flexibility, allowing you to purchase the equipment, renew your lease, or simply return the equipment once the lease has expired.

 

Tax Advantages:

The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense. Therefore you can deduct the lease payments from your corporate income and are not taxed on them.

100% Financing:

Leases can provide 100% financing, which includes shipping, installation, software, training or any other soft costs. In most cases, a large down payment is not necessary and the complete cost of the equipment is spread out over the life of the lease.

Speed:

Leasing allows you to respond quickly to market or technological changes. You can have the equipment you need in operation quickly when you need it, without hassles. Many leasing companies can have you approved within one or two business days with minimal documentation.