Leasing is a major source of
investment in new equipment. Many companies,
associations and government agencies acquire new equipment
through leases. Of the $668 billion spent by businesses on
productive assets in 2003, $208 billion, or 31 % was acquired
by American businesses through leasing. The average company
earns 12% on every dollar of working capital that is
retained.
Leasing works for any type
of business
Every imaginable type of business and/or organization
throughout the world leases equipment, including
proprietorships, partnerships, corporations, government
agencies, religious and non-profit organizations. Over 80% of
American businesses lease some of their equipment and nearly
90% say they would choose to lease again.
Make better use of capital
Conventional bank loans
usually require more money upfront than leasing and often have
restrictive covenants. Banks usually will require a 10%-20%
down payment. Leasing generally requires only one or two
payments upfront, which are applied to future payments.
Finance 100% of costs
In most cases, the full
amount of the equipment, as well as the shipping and
installation and maintenance costs can be included in the
lease. This spreads the payments out evenly over the term of
the lease and frees up working capital for other areas.
Tailor a solution to meet
needs
Leasing is flexible.
Customize the length of time and the amount of the monthly
payments to meet desired business needs.
Tax advantages
Depending on the structure of the lease, the entire monthly
payment including interest may be written off as a deduction
for the whole term.
Little money down
Two payments are all that
is needed to start a lease. (Vs. the 10%-20% banks require in
a loan).
Protect credit lines
Bank credit lines remain
intact for other needs.
Off balance sheet
financing
Leases are not required to
be reflected on a balance sheet as debt, therefore making your
company more attractive to potential lenders.
Flexible payment plans
Unlike conventional loans
there are a number of alternative payment cycles available.
Click here to see a list of
equipment that our company can assist you with.
