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Why Lease?

Why should you lease?

Leasing is the leading-edge way to obtain the use of new, timesaving, productive equipment with no major capital outlay. It takes less time to get approved, less cash down, and the lease rate is fixed for the lease term. With a lease you also have more flexibility in structuring the lease to meet your needs.

If you choose to lease, we purchase the equipment and own it. In exchange, you make a monthly payment to us. At the end of most leasing terms, you have the choice to purchase the equipment, return it or extend the term of the lease.

Regardless of whether you choose purchasing or lease financing, both have a direct impact on your company's Federal Income Tax liability and cash flow. It is possible to lease equipment for less after tax dollars than outright purchase.

Equipment generates no greater profit by ownership. Use and employ your cash where it will help generate further profits. Make your equipment pay for itself through leasing.

Key Statistics

According to the Equipment Lessors Association, 8 out of 10 US businesses use lease financing to acquire the capital equipment needed for growth. Over 65% of Fortune 1000 companies lease. Small businesses use leasing as a smart equipment acquisition alternative - one that helps them preserve valuable working capital needed for growth.

Use of Equipment

The lessee (your business) obtains use of the equipment for an agreed-upon (monthly, quarterly, etc.) payment. You pay for equipment on a monthly basis rather than cash up front.

Avoid Technological Obsolescence

At the end of the lease term, your business is not "stuck" with outdated equipment.

Tax Advantages

Lease payments may be fully deductible as a business expense. Leasing may help your business avoid Alternative Minimum Tax (AMT) Liability. Be sure to consult with your tax adviser or accountant for specifics that pertain to your business.

Minimizes Balance Sheet Liabilities

Lease payments may be eligible for "off-balance sheet" treatment, where items are treated as an expense rather than a debt. Your tax professional can help you with specifics that pertain to your business.

Finance Soft Costs

Your business may be able to include expenses associated with equipment use, such as shipping, installation and software, in the lease agreement.

Preservation of Bank Credit Lines

Leasing wont tie up your existing lines of credit so they remain intact to fuel growth or meet expenses.