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Why Lease?

Why Do Companies Lease Equipment?

  • Companies recognize that the value of equipment comes from its use, not its ownership.
  • Leasing allows managers to budget more efficiently and get better equipment without large initial capital outlays.
  • Companies lease for efficiency and convenience.
  • Leasing permits a close matching of rental payments to revenue produced by using the equipment.

Benefits of Leasing

The value of equipment comes from its use, not its ownershipKeep your company competitive with state-of-the-art technology
Leasing allows managers to budget more efficiently and get better equipment without large initial capital outlaysLeasing is Cost Effective
Companies lease for efficiency and convenienceFixed rate payments better for forecasting and a hedge against inflation
Leasing permits a close matching of rental payments to revenue produced by using the equipmentLow or no down payment on equipment purchases. Leasing allows you to finance 100% of the equipment cost with the term can match the useful life of the equipment
Leasing allows your company to avoid the uncertainties and risks that go along with equipment ownership. Avoid obsolesce - upgrade or replace equipment during or at the end of termLeasing allows you to maintain working capital lines of credit for inventory needs that produce more sales, rather than tie up capital lines in equipment expenditures
Leasing is FlexibleLeasing helps conserve your operating capital
Leasing allows your company to design a financing program tailored to your company’s specific needs. Companies have different needs, different cash flow patterns, and different - sometimes irregular streams of incomeBundle in maintenance for one fixed payment for the term. Protects against maintenance cost increases
Keep debt lines free, comply with debt covenants or avoid committing to equipment that may quickly become obsolete, leasing can help you manage these areasLeasing allows you to avoid depreciation schedules, Alternative Minimum Tax (AMT) and Mid-Quarter Convention problems. You the lessee simply make the lease payment and deduct it as a business expense. OFF BALANCE SHEET FINANCING!
Leasing allows you to be more flexible in the management of your equipmentLeasing helps you manage your balance sheet and improve or maintain your ROA and ROI ratios
Leasing is Good Business because as your business grows, bank lines of credit and your own cash are still available to support increases in your company’s working capital requirements. Leasing avoids stranded assets. Leasing is better equipment management
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