Benefits of Leasing
Leasing Tax Benefits
A lease can be structured so that it may have certain tax advantages over the other forms of equipment acquisition methods.
Leasing Improves Return on Assets
Return on assets (investment or equity) frequently is used as a standard of profit center evaluation. Leasing will have a positive effect when compared to ownership.
For example, lease payments, unlike loan payments are sometimes fully tax deductible. With the new tax laws, some previous depreciation advantages of ownership are becoming far less attractive when compared to the benefits of leasing. Certain types of leases are viewed as preferable by accountants to avoid Alternative Minimum Tax Liability. Each company should discuss its tax situation with a tax advisor.
Purchasing of equipment causes the user to incur a cost recovery expense which is called depreciation expense. In cases where the "lease cost recovery" is over a shorter term (less than 5 years) than standard "MACRS depreciation", a tax benefit is created that favors leasing.
Financial Reporting Advantages
When compared to a loan for the purchase of equipment, the use of leasing will affect the balance sheet as leases typically do not appear on the lessee's balance sheet as either assets or liabilities.
Benefits to Customers
Standard Capital Corporation only requires the first and last monthly payments in advance.
Some lease payments are fully deductible for tax purposes, which result in a lower after tax cost of capital.
Preserve Working Capital
Leasing allows the customer to retain cash for current needs or other investment opportunities.
Conserves Credit Lines
By leasing equipment, the customer can maintain available lines of credit at other financial institutions for emergency needs or other cash flow purposes.
Immediate Return on Investment
Profit from the utilization of equipment with a very nominal up-front cost.
Simplifies Bookkeeping Procedures
If a lease is structured so that lease payments are fully tax deductible, there's no need for cumbersome depreciation or amortization schedules which separate the principle and interest.
Acts as a Hedge Against Inflation
Lease payments are fixed over the term of the lease end and, therefore, are not subject to any inflationary increases. The net cost of the lease will actually decrease relative to revenues, which will increase during inflationary times.
Overcoming Budget Limitations
Organizations restricted to a yearly capital budget are able to acquire additionally needed equipment with affordable monthly or quarterly rental payments.
Standard Capital Corporation's Lease Line
As a Standard Capital Lease Line member, your customer can expect automatic credit line increases and benefits such as special promotions and advantageous upgrade capabilities.
Benefits to Sales Representatives
Overcomes the Dollar Barrier Associated with Retail Cost
Leasing provides the ability to reduce the total cost of an equipment acquisition to a convenient monthly payment. Since cost is usually the primary objection raised in the closing cycle, the utilization of a leasing program easily allows the sales representative to overcome this specific hurdle.
Cost Justifies Equipment
The utilization of equipment either produces income or generates savings for a company. Reducing the acquisition to a monthly payment can dramatically demonstrate the revenue and / or savings for the business and is a very effective closing tool.
Increase the Size of your Order
With our convenient add on and upgrade policy, the customer can continue to enhance the original equipment acquisition which has the effect of building repeat sales. With the Standard Capital Consolidated payment plan, the customer makes one convenient payment to cover all these schedules.
Brings Out Objections for a Trial Close
Leasing can be used as a trial close when offering equipment with a "cash or lease" alternative, rather than a buy or not to buy option.
Builds Repeat Sales
Once a customer leases through Standard Capital Corporation, a dealer representative will be advised of any additional credit lines available to the customer for future purchases.
Quicker Close/Shorter Sales Cycles
With Standard Capital Corporation's self write lease program, you'll be able to complete an order in the prospect's office and shorten your sales cycle by eliminating needless follow-up for payment terms.
Benefits to Vendors
Rapid Credit Decisions
Standard Capital Corporation delivers the quick turnaround on credit decisions that is so important to vendors. Ordinarily, credit applications are processed within 6 business hours. We have the capability of handling "rush" transactions and, for Lease Line clients, can provide virtually instantaneous decisions.
Immediate Invoice Payments
Invoices are paid immediately upon receipt of verification of delivery and installation. Certain qualified vendors can participate in our advanced funding program which alleviates the requirement to tie your working capital.
Self-Write Lease Form
This simple document provides the closing tool that allows transactions to be signed on the spot, eliminating potential paperwork delays that contribute to buyers remorse and lost deals.
Competitive Rate Structure
Standard Capital Corporation offers rates which are among the most competitive available in the leasing industry. We have lease terms from one to five years as part of our standard program.
Flexible Payment Structures
Innovative payment plans include deferred payment options of up to 90 days.
You Account Executive or Sales Coordinator can be reached via a convenient toll free 800 number.
Computer Assisted Sales Staff
Standard Capital Corporation is able to provide you with the current status on any of your accounts. (Please contact your Account Executive or Sales Coordinator for assistance). This can prove helpful when credit lines have been established to assist in your future sales.
Standard Capital Lease Line
This program reserves credit lines for your customers beyond the amount of the initial transaction. This proves invaluable when upgrading or adding equipment since the customer is already pre-approved and any additional credit processing is eliminated.