WHY COMPANIES USE EQUIPMENT LEASING?

    • Conventional bank loans usually require more money upfront than leasing and often have restrictive covenants.

    • Conventional debt financing may require a 10-20% down payment.

  • In most cases, the full amount of the equipment, shipping and installation costs can be included in the lease. This spreads the cost out evenly over the term of the lease freeing up your money to work harder for you.

  • Monthly payments on operating leases are typically viewed as operating expenses offering potential tax benefits.

  • Master" leases offer a more convenient way to add more equipment to your existing lease.

  • With ownership you run the risk that new technology will render your equipment obsolete within a few years, leaving you with equipment that no longer meets your needs and that is difficult to sell. Leasing allows you to replace or upgrade equipment to keep your business competitive.

LEASING FACTS

Leasing is one of the fastest growing ways of obtaining equipment in business today

  • Recent surveys found that 80% of U.S. businesses, from Fortune 500 to the local family business, lease some portion of their equipment

  • Keep your business’ cash for future needs, unexpected expenses or working capital when revenues are low

  • You can always lease equipment – you can’t lease money!

  • Leasing doesn’t restrict on your bank credit lines. Protect your borrowing power for other business needs or opportunities

  • Most types of financing require down payments of up to 25%, whereas leasing covers 100% of the cost of the equipment. Most leases require only one or two payments in advance. Get immediate use of the equipment with minimal up-front cost