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Asset management - A lease provides the use
of equipment for specific periods of time at
fixed payments. The lessor assumes and manages
the risk of equipment ownership.
-
Balance sheet
management - Because an operating lease is
not considered an asset or liability, it
does not appear on your financial
statement, thus making you more attractive to
traditional lenders when you need them.
-
Customized solutions - A variety of lease
structures are available, allowing you to tailor a
program to fit your specific cash flow needs.
You are able to customize a program to address
your specific circumstances (i.e. cash flow,
budget, transaction structure, cyclical
fluctuations etc). Some leases allow you, for
example, to miss one or more payment without a
penalty, an important feature for a seasonal
business.
-
Flexibility - As your business grows and
your needs change, you can add or upgrade at any
point during the lease term through an add-on or
master leases.
-
Flexible end of
term options - There are several options for
disposing of equipment after the lease term ends
including returning the equipment, renewing the
lease or purchasing the equipment.
-
Immediate
write-off of the dollars spent - Operating
lease payments may deducted as expenses on a
company's income statement, therefore, equipment
does not have to be depreciated over five to
seven years.
-
Improved cash
forecasting - By leasing equipment you know
the amount and number of lease payments over the
life of the leasing period so you can accurately
forecast cash requirements for your equipment.
-
Improved earnings - An operating lease provides a lower cost than a capital
lease in the early years of a lease.
-
100% financing
- With leasing, there is very little money down
- perhaps only the first and last month's
payment are due at the time of the lease. In
addition you may include installation, freight,
software etc. in the calculation of you lease
payment. That means that you will have more
money to invest in revenue-generating
activities.
-
Speed -
Leasing can allow you to respond quickly to new
opportunities with minimal documentation and red
tape. Often times we can approve your
application within hours and you can have your
equipment very quickly.
-
Tax benefits - Lessors often pass the tax
benefits of ownership on to the lessee in the
form of lower monthly payments.
-
Tax treatment
- The IRS does not consider an operating lease
to be a purchase, but rather a tax-deductible
overhead expense. Therefore, you can deduct the
lease payments from your corporate income.
-
Technology
Upgrades - If the nature of your industry
demands that you have the latest technology, a
short-term operating lease can help you get the
equipment and keep your cash. Lease equipment
that you expect to depreciate quickly. Your risk
of getting caught with obsolete equipment is
lower because you can upgrade or add equipment
to meet your ever-changing needs.
