Improves Cash Flow
Equipment leasing allows you to pay for the equipment as income is earned from its use.
Leasing allows your business to obtain new or replace outdated business equipment. With regular equipment replacement, productivity and efficiency increases. Equipment can and should be replaced as required through an established monthly financing budget.
Expanded Credit Resources & Conserve Working Capital
Existing Credit lines are not utilized, leaving them available for working capital, seasonal requirements, and other operating needs. Businesses benefit from the added flexibility. Equipment leasing finances 100% of the equipment cost, leaving precious working capital for other needs.
Leasing removes the need for equity financing. It allows the business to acquire and use an asset without having to make a substantial down payment or upfront investment. This minimizes the negative impact of equipment acquisition on cash flow and working capital.
Leasing lets the business acquire and use equipment at today’s cost, not tomorrow’s inflated dollar.
No Pre-Payment Penalty
After 12 to 18 timely payments, the lease may be paid off without penalty. The lessee is only be responsible for the remainder of the equipment cost if all payments are made on time.
Lease payments may be tax deductible (Section 179), reducing the cost of your lease. Leasing also helps you avoid the Alternative Minimum Tax (AMT), reducing your AMT tax liability. Businesses may be able to deduct lease payments as an operating expense, rather than depreciating the equipment over a long period of time. This can result in a lower real cost to you on an after-tax basis and not to increase liabilities on your balance sheet.
Quick, Easy and Less Expensive
The whole equipment leasing process is faster, simpler, and often less costly than other equipment financing alternatives. Our leases are always less costly than normal credit card lines.
Loans can be tailored to meet the needs of each company. Banks generally require a strong relationships and deposits to be willing to finance to you. Often this includes cross-collaterization, compensating balances, corporate restrictions, and substantial down payments.