Leasing improves cash flow
Leasing provides 100% financing with no down payment. Leasing payments are a fraction of the total purchase price and can be a pre-tax expense. Lease payments even can be scheduled to coincide with a company’s seasonal cash flow.
Leasing preserves existing credit lines
Leasing, unlike a capital expenditure will not tie up a company’s valuable credit lines. By minimizing the credit exposure to your present banker, the company may be able to obtain additional credit lines for expansion needs.
Leasing conserves operating capital
Leasing frees up a company’s working capital for investments or other business expenses.
Leasing provides a fixed rate financing
Leasing payments are fixed over the term of the lease. Fixed payments improve a company’s ability to budget and forecast, improving its control over cash flow.
Leasing helps hedge against inflation
Low, fixed-rate pricing protects against inflation and allows current acquisition with tomorrow’s dollars.
Leasing offers tax advantages
With operating leases, tax laws allow the deduction of lease payments as a business expense. Therefore, the asset can be fully written off during the lease term thus giving an accelerated write-off and reducing the after-tax cost of the lease. Consult your accountant regarding the nature of deductions for your business.
Leasing is flexible
Leasing can be designed to fit your needs by offering a wide range of financing options with flexible payments, term and buyout at expiry of lease. Flexible end-of-lease options let a company purchase, refinance, upgrade or return the equipment.
Leasing provides financial efficiency
Leasing allows you to acquire equipment today and pay for it with revenue generated by the new equipment. Expenses are matched to revenues generated and this is good and sound business management.
Leasing reduces the risk of obsolescence
It is common for a company’s usage of new equipment to evolve beyond the equipment’s capabilities. In the meantime, new technology continues to deliver higher quality and new capabilities. Leasing protects by allowing upgrades and equipment add-ons at anytime without penalty, thereby keeping your technology updated.
Leasing makes more equipment available
Because the monthly lease payment is a small portion of the total cost of the equipment, leasing allows a greater amount of equipment for a given dollar allocation.
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