Leasing Benefits
Provides 100% financing: Unlike bank financing there is no down
payment required on a lease;
every dollar paid works toward debt reduction.
Predetermined fixed rate: The lease payment is calculated in
advance providing a fixed rate
and a fixed payment for the entire term unlike the bank which may require a floating rate.
Creates an additional financing source: Leasing allows existing
bank lines to remain intact
without affecting future borrowing power.
Provides the benefits of ownership: Leased equipment is acquired
without a major cash outlay, debt burden or asset management responsibility.
Tax Benefits of Leasing: The full monthly payment may be treated as an expense under
certain leases as opposed to the interest only portion of a bank loan. Recent changes in tax
laws allow you to expense up to $100,000 in new or used equipment purchases. These changes
include all depreciable equipment, even software.
Offers a hedge against inflation: Productive equipment leased today is paid for with future
dollars.
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