1. Leasing Improves Your Cash Flow
Leasing provides 100% financing with no down payment. Lease payments are a fraction of the total purchase price and they are a pre-tax expense. No compensating balances are required and lease payments can be scheduled to coincide with income fluctuations.
2. Leasing Preserves Other Credit Sources
Leasing keeps your bank lines and other sources available to meet short term requirements such as inventory buildup and increased receivables.
3. Leasing Helps Hedge Against Inflation
Each dollar you pay back in lease payments five years from now will probably have substantially less purchasing power than today’s dollar. These “smaller dollars” that result from inflation are that much easier to part with.
4. Leasing Keeps Money in Motion
By leasing, you can keep your company’s money working hard. For example, consider what $50,000.00 can do for you when it is actively invested in your inventory - rather than languishing in fixed equipment.
5. Leasing Simplifies Budgeting
Budgets can more readily accommodate monthly lease payments than large cash expenses for purchasing fixed assets.
6. Leasing Offers Fixed Rate Financing
Leasing allows you to know exactly what your expenses will be over the term of the lease.
7. Leasing Helps Equipment Earn Its Keep
You expect your employees to earn their pay as they perform - why not your equipment? With leasing, you pay for your equipment as it benefits your business.
8. Leasing Lets You Choose The Equipment
You can specify the equipment and the source - as if you were purchasing it directly. All normal manufacturer’s warranties are passed through to you.
9. Leasing Makes More Equipment Available
Since the monthly lease payment is a small portion of the total cost of the equipment, leasing allows you the use of a greater amount of equipment for a given dollar allocation.
10. Leasing Provides Flexibility
At the end of the lease term, you may either return the equipment to the leasing company or acquire it at its fair market value. In certain cases, you may wish to renew the lease for an additional period of time.
