Why Lease Equipment?
Leasing provides other credit sources. Unlike a capital expenditure, leasing keeps a company's credit lines available to meet other needs.
Leasing avoids risk of usage or technological obsolescence. It is common for a company's usage of new equipment to evolve beyond the equipment's capabilities. In the meantime, new technology continues to deliver higher quality and new capabilities. In both cases, leasing protects you by allowing upgrades and equipment add-ons.
Leasing conserves operating capital. Leasing frees up a company's working capital for investments or other business expenses.
Leasing offers fixed rate financing. Fixed payments improve a company's ability to budget and forecast.
Leasing allows choice of equipment. Companies can specify the equipment they need and the source - as if purchasing it directly. All normal manufacturers warranties are passed through to them.
Leasing helps hedge against inflation. Low, fixed-rate pricing protects against inflation and allows current acquisition with tomorrow's dollars.
Leasing makes more equipment available. Because the monthly lease payment is a small portion of the total cost of the equipment, leasing allows a greater amount of equipment for a given dollar allocation.
Leasing provides flexibility. Flexible end-of-lease options let a company purchase, refinance, upgrade or return the equipment.
Leasing offers tax advantages. With operating leases, tax laws allow the deduction of lease payments as a business expense. Plus, there is no time wasted with depreciation schedules or Alternative Minimum Tax (AMT) issues.
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