Why Lease?

Today, eight out of 10 American companies lease some or all of their needed equipment.

 

Leasing is flexible

Companies have different needs, different cash flow patterns, different - sometimes irregular - streams of income. For example, start-up companies typically are characterized by little cash and limited debt lines. Mature companies might have other needs; to keep debt lines free, to comply with debt covenants, and to avoid committing to equipment that may quickly become obsolete. Therefore, your business conditions - cash flow, specific equipment needs and tax situation, may help define the terms of your lease. Moreover, a lease provides the use of equipment for specific periods of time at fixed rental payments. Therefore, leasing allows you to be more flexible in the management of your equipment.

Leases can be a great way to avoid the politics and lengthy approval process of a board of directors generally leases do not need the approval from a hospital or health clinic's board of directors as a traditional loan would- making it a better choice for acquiring new equipment for some clinics and hospitals. Leases can also be more appealing to some businesses as it can allow for lower payments in certain situations. Contact us to see all your available options so you can make an informed decision on what is best for your company, the equipment or financing you need and your budget!

Leasing is practical

By leasing, you transfer the uncertainties and risks of equipment ownership to the lessor, which allows you to concentrate on using that equipment as a productive part of your business.

 

Leasing is cost effective

Equipment is costly and some of the costs are unexpected. When you lease, your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to best meet your needs.

Further, your equipment needs can change over time due to changes in your company, such as diversification. Leasing allows you to stay on the cutting edge of technology.

Sophisticated business managers have learned that the primary benefits of higher productivity and profit come from the use of equipment, not owning it.

 

Leasing has tax advantages

Rather than deal with depreciation schedules and Alternative Minimum Tax (AMT) problems, you, the lessee, simply make the lease payment and deduct it as a business expense.

 

Leasing helps conserve your operating capital

Leasing keeps your lines of credit open. You don't tie up your cash in equity. Also, you avoid costly down payments. With other advantages such as off-balance sheet financing, leasing helps you better manage your balance sheet.

WHO LEASES?

Lessees vary widely from small one-person operations to Fortune 100 corporations. And the kinds of equipment being leased are just as diverse.

 

Transactions range from a few thousand dollars worth of equipment (such as fax machines) to multi-million dollar cogeneration facilities, telecommunications systems, medical equipment (including CAT scanners and MRI imaging), office systems, computers, commercial airliners, and transportation fleets. There is no end to the types of equipment that companies lease.

 

In 2022 over 2 trillion dollars is projected to be leased by American businesses. 

We can help any business acquire funding for any equipment, working capital, real-estate, renovate or fund an addition, cash advance, and/or franchise opportunity. Contact us today for all your available funding options

 

Example of Leasing versus a cash loan or purchase

Chart comparing lease versus cash loan