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There are many reasons companies choose to lease instead of purchase. Large companies may seek the tax incentives; whereas a small company may need to conserve working capital. When deciding whether or not to lease companies consider the following leasing benefits:
Conservation of Working Capital. Purchasing office furniture or equipment can require a large cash outlay. Many companies lease to conserve capital. Money may be better spent for other day-to-day needs to keep the business successful.
Flexibility. Leases can be structured to meet the varied needs and financial goals of your business. Leasing can offer deferred payments, step plans, seasonal payments, no money down, etc.
Tax Benefits. Section 179 of the IRS code allows significant tax savings. Often, a monthly lease payment can be deducted as an operating expense since it is treated as a rental rather than a loan.
Additional Credit Lines. Lease approvals for office furniture or equipment can establish an additional line of credit that does not affect your bank lines. You can lease just about anything needed to run your business.
Preserve Cash Flow. Profits generated from the use of your new office furniture or equipment is greater than the lease payments. This additional cash can be used for other needs of the business.
Easier Than Bank Loans. Lines of credit can be established in a matter of hours with minimal information and no collateral. Leasing is convenient, quick, and easy. No long form. 100% financing.
Fixed Payments. Many financing transitions have floating interest rates. Lease financing offers fixed payments, enabling you to budget and manage your dollars for a long time.
We welcome any lease-related questions you may have.
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