Leasing Advantages
Conserves working capital....
Leasing normally provides 100% financing.
Avoids use of short-term bank lines....
Conserving borrowing capacity for financing inventory accounts receivable and other short term needs.
Provides intermediate-term financing....
Up to 5 years in some cases. Your customer has a more affordable payment thus increasing your sales.
Guaranteed payment schedule....
When rates move, we don't. The customer has a guaranteed payment.
Avoids credit bureaus....
Leasing is a business rental. Credit bureau reporting is usually avoided therefore customers look less leveraged. This is an added insurance policy for customers should they need to access other financing methods. Bad cash flow is the number one cause of business failure
Flexible Terms....
Provides deferred payment schedules, semi-annual plans and seasonal payment plans. This flexibility is usually unavailable with other financing methods.
Tax advantages equal lower effective rates....
Writing off equipment as a rental expense can save a lot over depreciation methods.
Lower rates....
Leasing is often lower than even conservative bank financing.
Frees up funds....
For ownership of appreciating assets such as real estate.
Pay for equipment out of earnings rather than equity capital....
Would you pay for an employee three years in advance? Customers can better leverage their capital.
* Leasing is the fastest growing financial segment. It accounts for 30-40% of all financing methods.
