| 1. Use of Equipment Leasing Is the Use of an Asset - Leasing enables you to pay as you use.
2. Fixed Payments - Monthly payments on a lease are generally fixed for the entire term of the lease.
3. Longer Terms - In lease arrangements, the term can be as long as 60 months and in some cases even longer.
4. Protection From Obsolescence - Leasing lets you match the term to what you perceive to be the equipment's useful life.
5. No Down Payment - No down payment is required on a lease.
6. 100 Percent Financing - A lease transaction allows you to finance the total package.
7. Flexibility - Leasing provides a lessee with greater structuring flexibility.
8. Simpler Than Bank Loans - Leasing programs and procedures are designed to take the red tape out of financing capital equipment for business.
9. Purchase/Renewal Options - Most lease arrangements allow customers the option to purchase at a state amount or at fair market value, or to renew the lease at a reduced monthly payment.
10. Conservation of Capital - If you are in a business where you have important alternative uses for money on hand, leasing always wins out in the "lease vs. buy" analysis. |
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11. Easier Cash Flow Forecasting - Leasing helps equipment users fit a monthly payment into their budgets. Because payments are fixed, users can continue to intelligently budget into the future.
12. Ability to Work Within Budget Limitations - Many managers acquire equipment via leasing because it allows them work within the operating budget.
13. Tax Benefits - Lessees can usually deduct their monthly lease payments as operating expenses. Nevertheless, it's always best to talk to your tax accountant first.
14. Special Programs - Marketing and pricing programs can be customized to reflect the financing needs of specific industries.
15. Master Lease - A Master Lease is an agreement between the lessee and lessor as to the terms and conditions under which they will do business.
16. Establish Credit - Leasing helps new and existing business to establish term credit through fixed monthly payments over time.
17. Additional Lines of Credit - When equipment is leased, a business establishes an additional line of credit with its lessor.
18. Special Advantages for Municipalities - Some leasing companies have municipal lease programs that pass on benefits to the lessee in the form of reduced monthly payments.
19. Use Lessor for Other Equipment Needs - If you have the good fortune of selecting a full-service lessor, all your equipment (from photocopies to forklift) can be handled by someone with whom you have already developed a business relationship.
20. Respond to New Business Opportunities - Profits generated from the productivity of the equipment are usually greater than the lease payment.
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