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Why
Choose Leasing for Your Equipment Acquisitions?
Today, eight out of ten American companies-from small operations
to Fortune 100 companies-rely on leasing to acquire assets. They
recognize that value comes from use, not ownership. Leasing provides
an array of financial and other business benefits:
Build capital strength. Leasing lets
you purchase the equipment you need today while spreading your payments
over time. You'll pay as you go, not up front-freeing up capital
for investment or other business expenses instead of tying it up
in fixed assets.
Avoid Obsolescence. With leasing, add-ons
and upgrades are easy. Depending on the financial option you choose,
when the lease expires, you can buy the equipment, trade it in for
new, or simply walk away. With a lease, you're protected from being
locked into owning equipment that may not meet your future needs-or
that is obsolete before it fully depreciates.
Respond quickly to changing business needs.
Market forces, financial pressures, and emerging competition call
for flexible options. Leasing lets you respond nimbly as your business
grows and changes. It also gives you the flexibility to upgrade
to the newest releases, features, and functions as they become available.
Preserve your credit lines. With leasing,
you'll have a new source of credit for your needs today and tomorrow,
while keeping your bank lines open for other uses.
Receive 100 percent financing. Leasing
permits 100 percent financing. Lease terms can be matched with the
useful life of your asset. Unlike bank loans, no down payment is
required in most cases and typically, there are no compensating
balances. You can finance the cost of your equipment, along with
installation, design, shipping, and other soft costs.
Generate profits. As your business
grows, you can reinvest the cash conserved by leasing. Grow your
inventory or invest in a new marketing promotion-investments that
can bring real profits to your business.
Stretch your budget. Capital budgets
often won't stretch to allow for an outright purchase, but your
operating budget may easily accommodate a monthly payment. Leasing
guarantees a fixed monthly lease payment for the length of the lease
term, so it's easy to forecast your expenses and even obtain products
you hadn't planned for.
Gain tax advantages. Leasing may offer
key tax benefits that reduce the cost of obtaining equipment. Depending
on your lease, you may be able to write off the entire monthly payment
as an operating expense or capitalize the outlay. Please consult
your tax advisor about your specific situation.
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