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Lease Advantages

NorthTexas Lease Advantages

Rather than purchasing equipment with cash, lease it. Since there is no down payment to start with, you conserve your working capital that can be used more profitably for your short-term business needs. Unfortunately, some of the credit available to you today might not be there tomorrow if you exhaust your credit with a major purchase. Leasing the equipment you need, however, helps preserve valuable credit lines while giving you the financial resources you need.

Advantages over conventional financing:

100% Financing/No Money Down - Lease financing covers 100% of the equipment costs. Some soft costs can also be included. Large down payments are usually not required unlike that of a bank.

Conserve Working Capital - Cash isn't tied up in equipment purchases. Compare a monthly payment to a large cash outlay.

Convenience/Simplicity - A simple one-page Lease Agreement is usually the only document needed for a lease which is designed to take red tape out of financing equipment for businesses.

Budgeting Assistance - A lease payment schedule can be customized to meet the needs of each customer. Unlike variable rate loans and lines of credit, lease payments are usually fixed allowing you to budget efficiently.

Master Lease with Simple Add-Ons - Incorporate several equipment purchases into one lease and one payment. When other equipment is needed, simply add it on to the existing lease contract to keep one payment.

Obsolescence Protection - The lease can allow an upgrade to the latest equipment during the lease term. An upgrade option is typically not available if cash is paid or if a loan was taken out to pay for the equipment.

Extends Current Credit Lines - Leasing provides a non-conflicting source of credit, thereby increasing the customers' borrowing base. It leaves current credit lines open and available for other uses.

Equipment Pays for Itself - Leasing allows the asset to be paid for as it generates revenue.

Leasing Offers Possible Tax Savings - Often times a lease can be written off as a monthly expense. When equipment is purchased with cash or a loan is taken out to purchase equipment, the customer must depreciate the asset. Leasing can help avoid Alternative Minimum Tax (AMT) liability.

Longer Terms - Many banks only lend money for shorter terms, usually 12-36 months.

Flexibility - Leasing provides a lessee with greater structuring flexibility such as number of security deposits, number of months, differing purchase options, and differing payment plans.