A SOUND BUSINESS CHOICE:
In today’s environment, state-of-the-art equipment is essential to generate profits, thus keeping that competitive edge. However, we feel the answer to equipment acquisition is not through outright purchases. This can be detrimental to working capital and cash flow. We also advise against using credit lines for equipment acquisitions, which can be used in so many other capacities.
An equipment lease is a written agreement which the owner (lessor) of a piece of equipment gives the user (lessee) the right to use the equipment for a specified period of time for an agreed upon payment.
Over the past 20 years, leasing has become the fastest growing method of accessing capital equipment for American businesses. Because of its flexibility, leasing can benefit all types of companies; large and small, public and closely-held, high tech and industrial, established and start-up.
Leasing Pays For Itself: Leasing allows you to purchase the equipment you need withoutimposing upon your company’s cash flow. Also, lease payments are made from future dollars, providing present value savings, as today’s dollars are worth more now than future dollars.
Leasing Preserves Credit Lines: Leasing provides an additional source of funds which supplements existing credit lines. Your available capital is increased because other credit lines are left unencumbered for operations, expansion and acquisitions.
Leasing Conserves Capital: Leasing usually requires a smaller expenditure, thereby leaving funds available to invest in ways that may be more profitable for your company.
Budgeting: No intricate depreciation schedules are needed. Simply expense the lease payments. Leasing rentals may be fully deductible as a business expense for tax purposes, and eliminates the costly expense of re-calculating your tax liability under the current tax law.
Leasing Can Reduce Taxes: Unlike loan payments, lease payments may be fully deductible as an operational expense.
Leasing Provides Flexibility: Monthly or other periodic payment terms, ranging from 12 to 60 months, allow for simplified budgeting. Your payment schedule can cover all the costs associated with acquiring equipment, including installation, training, maintenance support and freight.
Get in touch with us at 724-986-2200. We'll gladly explore all possibilities to help you procure the equipment you need to grow your business. We can also help you increase sales through leasing. Give us a call today.