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Why
Companies Use Equipment Leasing
Bank loans have problems
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Conventional bank loans usually require more money upfront than leasing and
often have restrictive covenants.
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Conventional debt financing may require a 10-20% down payment.
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Leasing generally requires only one or two payments upfront
Finance 100% of your costs
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 cost out evenly over the term of the lease freeing up your money to
work harder for you.
Realize significant tax
savings
Monthly payments on operating leases are typically viewed as operating expenses
offering significant tax benefits. You should always consult with your financial
advisor to determine the most tax-beneficial lease for your company.
Your company can tailor a
solution that meets its requirements
Leasing is flexible so that you can tailor the length and amount of your
payments to meet your business' needs.
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"step-up" leases allow you to start with low payments that increase over time
so you can concentrate on using the equipment to generate revenue.
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"skip" leases restrict payments to given months of the year so you can plan
ahead to cover the slow times.
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"deferred payment" leases allow a significant grace period before your first
payment is due.
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"master" leases offer a more convenient way to add more equipment to your
existing lease.
Avoids the
risk of equipment becoming obsolete
With ownership you run the risk that new technology will render your equipment
obsolete within a few years, leaving you with equipment that no longer meets
your needs and that is difficult to sell. Leasing allows you to replace or
upgrade equipment to keep your business competitive.
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