Leasing provides 100% financing. Taxes, software, hardware, consulting, maintenance, freight, installation and training costs may be included in the lease.
Preserve/Free Up Working Capital
Leasing preserves your working capital by requiring only a minimum initial outlay of cash - usually just the first payment. This frees up your working capital for other profit-generating
activities or investments.
Leasing may allow you a dollar-for-dollar write-off of the lease rental payments. With the new tax laws, the depreciation advantage of ownership is far less attractive when compared to leasing. Profitability is derived from the use of the equipment, not the ownership.
Save Bank Lines of Credit
Leasing preserves your bank line of credit so that you are ready should a business opportunity or unexpected demand for cash occur.
Custom Tailored To Your Needs
Leasing can be tailored to fit your budget requirements. At the end of the lease term, you will have the option of purchasing the equipment, releasing the equipment or simply returning the equipment to the Lessor.
Provides Additional Line of Credit
Leasing allows the Lessee an opportunity to acquire more equipment without having to extend bank lines of credit or exhaust working capital.
Maximizes Cash Flow
Because most leases are 100% financing, Lessees can preserve cash and spread payments out over the life of the leases with zero down.
Off Balance Sheet Financing
Leasing may give you an opportunity (depending on structure) to write off lease payments as an expense and avoid listing the asset and liability on your balance sheet.
Protects against operating obsolete equipment
Leasing allows the Lessee to upgrade equipment on a specific schedule and avoid being stuck with out-of-date equipment.