Financing

Lease To Own Makes Good Financial Sense
Leasing business equipment preserves capital and provides flexibility. By leasing your equipment, you avoid having to come up with the funds necessary to purchase the equipment outright. Instead, with leasing, the cost of the equipment is spread out comfortably over a fixed term, and only a small initial down payment is required. The result is that your business’ cash flow and credit lines are left open to be used for day‐today operations and any growth opportunities.

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Obsolescence: Leasing allows your businesses to obtain new equipment and replace outdated equipment that may be slowing production down. With regular equipment replacement, you will increase your productivity schedule. Inefficient equipment is replaced as required through an established monthly lease budget.
 
Credit Lines: Leasing equipment leaves your existing credit lines available for short‐term needs.
 
Equity: Leasing removes the need for equity financing. It also allows you to acquire and use an asset without having to make a substantial down payment. Thus, minimizing the affect on your cash flow and working capital.
 
Hedge Against Inflation: Through leasing, you acquire the use of equipment at today’s cost, not tomorrow’s inflated dollar.
 
Tax Position: Lease payments may be 100% tax deductible as an operating expense on your tax return, reducing the net cost of your lease. (See IRS Code 179). As opposed to only depreciation and interest deductions for financed equipment.
 
Balance Sheet Effect: The effect of leasing on financial rations is very favorable.
 
Predictable Monthly Expenses: Leasing allows you to have a pre‐determined monthly line item, which can help you budget more effectively.
 
Budget Restrictions: Minimum outlay plus modest payments enable you to fit the lease into the tightest of budgets. When your spending schedule is severely limited, leasing makes it possible to obtain equipment you need, when you need it.
 
Flexible Credit Requirements: Leases are usually easier to obtain and have more flexible terms than standard bank loans.
 
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