PRESERVATION OF WORKING CAPITAL
For many lessees, cash flow often is tight and debt lines limited. Leasing provides these lessees with the means to acquire precious capital. And leasing keeps debt lines clear for core business uses rather than tied up in equipment expenses.
COMPLETE FUNDING & FLEXIBILITY
Unlike some financing options, leasing offers 100% financing. That means a lessee can acquire essential operating equipment and begin using it immediately to generate revenues with no money down. In addition, deferred or seasonal payments programs are available.
KEEP PACE WITH NEW TECHNOLOGY
Whether you’re in a high tech industry or not, technology drives the way U.S. companies do business. From computers and telephones to CNC Mills and Lathes, modern business equipment is in a near constant state of flux. Leasing provides a hedge against technology obsolescence by allowing companies to upgrade their equipment at the end of the leasing term.
PROTECTION AGAINST INFLATION
Through leasing, use of equipment is acquired at today’s cost while meeting rentals with tomorrows less valuable dollars. This is a powerful advantage when one considers that if equipment is purchased outright, today’s more expensive dollars are invested to cover tomorrow’s expenses. As price levels continue upward, leasing offers a clear advantage.
TAX ADVANTAGES
Operating leases are generally treated as fully deductible business expenses. Your tax professional should be consulted to determine what percentage of other types of leases can be deducted.