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The Benefits of Leasing Leasing conserves capital... We live in a world where demands on working capital always seem to exceed supply. By providing 100% financing, leasing allows you to have more money available to put into profit generating activities.Leasing provides tax-timing advantages... Lease payments are normally treated as a fully deductible operating expense for tax purposes. In addition, since the leas term is often shorter than the depreciable life for tax purposes, a lease can enable you to expense the equipment more rapidly than a purchase. Leasing provides an alternate source of credit... Leasing provides an additional source of financing. Unlike most bank loans which require 20% to 30% down, leasing offers financing for 100% of the equipment cost. Furthermore, leasing does not impact your bank line of credit - your existing line remains intact for essential short-term needs. Leasing means equipment flexibility... As your business grows and changes, you may need more equipment or equipment with increased capacities or additional accessories. Leasing allows you to add to or trade-up their equipment at any point during the lease term. Leasing lessons the impact of inflation... Inflation is a fact of life; every year the purchasing power of the dollar declines in value. By leasing, you get the equipment you need at today's prices and pay for it with tomorrow's cheaper dollars. Lease payments are fixed payments... Since lease payments are fixed, leasing lets you plan ahead with the assurance that your monthly payments will not change. With revolving bank loans, payments can change depending upon credit strength and / or prevailing interest rates. |
