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FOR A SMALL BUSINESS
Provides additional
sources of financing - Leasing does not tie up a companies bank lines, leaving
cash available for working capital and growth. We take the burden out
of the approval and closing process.
Conserves capital - Working capital is left
free to grow your business. Leasing allows you to budget the cost of equipment.
Low initial cost - Provides 100% financing.
Tax advantages - Payments may be deducted
as an operating cost so the equipment can be expensed over its useful
life. In many situations this provides significant savings to owners
of small businesses.
Flexibility - In most cases, installation,
freight and taxes can be added to the lease eliminating upfront costs required
by conventional loan financing. The customer may add on additional equipment
during the lease term.
FOR A
LARGE CORPORATION
Improves cash
flow - Does not require a large initial cash outlay and has a lower
payment than similar term debt financing.
Off balance sheet - An
operating lease is not capitalized on the balance sheet as a liability,
so it does not affect the companies debt ratios. Lease payments are
expensed through the income statement. This means capital budget funds
are left available for other important uses.
Not a capital budget item - Lease payments
may be considered part of the operating budget, therefore, reducing
annual budget restrictions that occur from outright capital purchases.
Flexibility - During the
term of the lease, our customers may add additional equipment.
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