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Leasing provides companies with a practical, effective way to finance the acquisition of the business equipment they need to grow and expand. Equipment financed on a lease gives you an option to buy at the end of the term.
Source of funds - Leasing provides a new source of funds, often enlarging the pool of capital available to the business - a very attractive alternative to bank financing when "tight money" conditions exist or during periods of expansion.
Hedge against obsolescence - Enables your business to have the use of newer technology and more productive equipment. This translates into being more competitive by offering better service, quality of work, less "downtime" and repair costs, increased productivity by employees, and an increase of revenues and profit for the business.
Tax savings - Lease payments are made with added revenues generated from the use of the equipment using "pre-tax" dollars. Loan payments are paid from "after-tax" revenues.
100% financing - In most cases, only one or two advance payments are required to initiate a lease/contract.
Loans:
- Medical:
- Working Capital - $20,000 to $150,000
- Cash advance to $150,000
- Practice Financing or refinancing
- Practice Equity loans
- Commercial:
- Cash advance on gross income up to $150,000
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A funding source available for start-up business! - Enables start-ups with good credit history to save valuable working capital and establish credit.
Exemption from sales tax on certain types of equipment - If sales tax must be paid, it is paid monthly on the rental payment, not a lump sum up front.
Inflation hedge - Provides a hedge against inflation by locking in on today's rates and paying monthly with inflated dollars.
Frees bank lines - Leasing enables the business to avoid the use of short-term bank lines, thus conserving borrowing capacity for financing inventory, accounts receivable and other short-term needs.
Costs of acquisition can be amortized - Most costs incurred in acquiring equipment can be structured into the lease and amortized over the life of the lease, e.g., delivery charges, installation charges, software, etc.
Loan covenants - Many businesses with outstanding bank loans, or lines of credit, have restrictions, or covenants, placed upon them by the bank as a condition of approval for the loan, or line of credit. Depending upon the language and intent of these covenants, a lease may provide a method of financing not otherwise permitted by such restrictions.
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