Leasing is ideal for the company that has to update technology/equipment to stay competitive in their industry or a company that has limited capital and equipment must be updated.  Many times leases are easier to get into than traditional financing.  Compared to traditional financing there are greater tax benefits with leasing, along with many other listed below.  We have the ability to lease to the following; manufacturing, industrial, agriculture, restaurant, office equipment, information technology, trucking and more.

Benefits of Leasing

• Improves Cash Flow-  Leasing allows you to pay for the equipment as the income is produced from the equipment.
• Off-Balance Sheet Financing-  A operating lease does not show on your balance sheets as a liability and the equipment is not shown as an asset.  Therefore, it helps businesses keep their debt-to-asset in check.
• NO Down Payment-  Typically leases do not require a down payment, rather first and/or last months payments.
• Change Equipment-  Leasing terms range from 24-72 month terms.  This allows a company to lease new equipment every few years and stay competitive in their industry.

Types of Leases

Operating Lease-  also known as FMV (Fair Market Value) purchase optoin

• Return at end of lease term
• Purchase at the FMV or 10% of the original cost of equipment at end of lease

Capital lease- 

• 10% PUT (Purchcase Upon Termination)  Lessee is obligated to purchase for 10% of the orginal purchase price
• May also opt for $1 purchase option

Still now sure if leasing is the right option for your business, click here to learn more about the pros and cons of leasing!