| CONSERVE
CAPITAL: |
Leasing provides
One Hundred Percent financing. If you invest your conserved capital in
your business and compound the earnings, you offset a substantial portion
of your lease payment.
|
| PLANNED
GROWTH: |
Bank borrowing
and leasing should complement each other. Bank loans are most economical
for short term equipment needs, while leasing is most beneficial for long
term equipment needs. And preserves your bank lines of credit.
|
| FINANCE
TAXES: |
You can cover
these costs with in your lease.
|
| PAYMENT
TERMS: |
You can tailor
your payment schedule and terms to suit your financial needs.
|
| BUDGET: |
Expand your
budget by freeing funds to build inventory, add space or personnel, or
enlarge your business.
|
MAXIMIZE
TAX
ADVANTAGES: |
You can reduce
your current tax obligations by treating your lease payments as fully deductible
operating expense. Which can be subtracted from pre-tax income, with a
lease term shorter than the useful life of the system. These benefits can
effectively reduce your tax obligations. In contrast, your interest and
depreciation tax benefits as an owner are typically claimed over a longer
period of time and are less in a given year.
|
| TECHNOLOGY: |
The state-of-the-art
equipment you purchase today may be tomorrow's dinosaur. Leasing offers
equipment users protection against the risk of technological obsolesence.
|
MAXIMIZE
CREDIT
LINES: |
When you borrow
funds to purchase equipment, it often reduces your available lines of credit.
By increasing liabilities, you decrease your available credit. Because
lease payments are shown as a footnote on your balance sheet, banks treat
these obligations differently. And your short term credit is retained.
|
| LEVEL PAYMENTS: |
Through leasing
you protect yourself from fluctuations in the money market. Since most
leases are quoted at fixed rates, the payments remain the same throughout
the term of the lease.
|
| THE BOTTOM
LINE: |
Lease finance
provides you with One Hundred percent of the proceeds to finance your equipment.
A bank will usually require as much as Thirty percent of the loan amount
be retained by the bank as a down payment. In effect, you only receive
Seventy percent of the proceeds of your loan. If a piece of equipment produces
income or savings as you use it, why pay for those savings before they
are realized? Leasing allows you to use your equipment while you pay for
it. It is the use of the equipment which is productive - not its ownership.
|
