- 1. LEASING CONSERVES CAPITAL.
> Leasing is essentially 100% financing and requires very little outlay for the “purchase” of equipment.
> Your customers can immediately take advantage of needed products without using existing capital.
> Cash or credit can be retained for purchasing inventory, implementing new marketing programs, etc.
- 2. LEASING PRESERVES EXISTING CREDIT LINES.
> Leasing does not affect existing credit lines at the bank which preserves credit for day-to-day operating needs.
- 3. LEASING LINKS EQUIPMENT COST TO REVENUE FLOW.
> Leasing allows you to acquire equipment now and to pay for it with revenue generated by the new equipment.
- 4. LEASING LIMITS CORPORATE LIABILITY.
> Typically, no other assets of your company are pledged as collateral for the lease. Your commitment is limited to the equipment being
leased and is independent of other existing asset equity in your company, maintaining and enhancing corporate value at the same time.
- 5. LEASING PROVIDES FOR OWNING OR UPGRADING THE EQUIPMENT AS NEEDED.
> Additional equipment can be added to an existing lease.
> At the end of the lease term, several options are available.
- 6. LEASING OFFERS TAX ADVANTAGES.
> Typically, lease payments are an operating expense and 100% deductible, purchases are not.
- 7. OTHER BENEFITS OF LEASING.
> When needs arise after capital budgets have been set, equipment can be financed out of operating budgets.
> Installation, training, software, maintenance, service contracts etc. can be included in the lease package.
> The initial outlay is minimal.
> Monthly payments are relatively low.
> The net cost of leasing is on a par with bank rates.