Leasing Benefits
What is Equipment Leasing?
Simply put, equipment leasing is an alternative type of business loan. The leasing company buys and owns your choice of equipment and then basically rents it to you at an agreed upon rate for a specific number of months. Depending on the lease structure, at the end of the lease term the customer can either purchase, return, or continue to lease the equipment.
What Can Leasing Do For Your Company?
Equipment leasing is an excellent way to grow your business without significant out of pocket expenses. Leasing offers real advantages including better value, more convenience and greater control. In most cases, the full amount of the equipment, as well as the service, shipping, installation costs and maintenance can be included in the lease. This spreads the costs out evenly over the term of the lease freeing up your money to work harder for you.
Businesses of all sizes have utilized the leasing option to help them update, upgrade or expand their capabilities. Whether they're contractors in need of a new piece of equipment or an oil company in need of a new living facility for its workers, the advantages of leasing often play a major role in their continued growth.
Benefits of Leasing
- Conserve Your Cash and Working Capital
Cash is not tied up in equipment. Instead, money is available for opportunities such as marketing, working capital, or seasonal cash flow needs.
- Preserve Your Credit Lines
Your existing lines of credit and borrowing availability are left untouched and ready to use for operational and short-term financing needs.
- Pay Only For What You Use
Monthly payments allow you to use your equipment immediately. And, the new equipment, with its operating efficiencies, pays for itself as you use it... over time. Profits are generated by the use rather than the ownership of equipment.
- Leasing Is 100% Financing
Our leases finance 100% of the cost of the equipment. You can also include "soft" costs in your lease such as shipping, retrofits, maintenance/service contracts and installation.
- No Sizable Down Payments Required
Unlike a bank loan, typically there is no down payment or compensating balances required. Typically your only initial cash outlay is the first and last rental payment.
- Eliminate Equipment Obsolescence
Leasing lets you regularly upgrade your equipment to a state-of-the-art level, eliminating the inefficiencies of owning out-dated equipment.
- A Variety Of Tax Benefits
Unlike loan payments, lease payments may be fully tax-deductible as an operational expense.
- Overcome Budget Limitations
In situations where limited budgets would ordinarily delay or prevent the acquisition of equipment due to a limit on capital expenditures, leasing allows for quick budget approval due to its small monthly expense.
- Lease Just About Any Type Of Equipment
Eight out of ten businesses use equipment leasing programs to acquire equipment. Typical types of equipment leases include:
- Living Facilities and Camps
- Modular Offices
- Construction Equipment
- Commercial Vehicles
- Medical Equipment
- Restaurant Equipment
Equipment Leasing >
