BUSINESS*INDUSTRIAL*COMMERCIAL

EQUIPMENT LEASE FINANCING

WHY BUSINESSES LEASE???

WHY BUSINESSES LEASE? TO CONSERVE CAPITAL

A primary reason most businesses lease is to conserve cash. This allows them to invest elsewhere in their business rather than in assets that depreciate. If the asset will make you money in the future, why pay for it now? Borrowing money is a form of cash for a business.

WHY BUSINESS LEASE? LEASING FITS YOUR BUDGET

100% of the equipment can be financed. Your acquisition of the equipment may be justified by comparing a low monthly payment to your monthly expenditures for rental equipment, outside services, personnel costs. Leasing can create a higher revenue for your business.

WHY BUSINESS LEASE? FOR TAX BENEFITS

Lease payments are a fully deductible operating expense for tax purposes. Leasing allows you to pay for the use of the equipment with pre-tax dollars, instead of drawing on past profits or working capital.

WHY BUSINESS LEASE? TO HEDGE AGAINST INFLATION

Leasing gives you a hedge against inflation. The equipment you acquire today is paid for with tomorrow’s inflated dollars over the term of the lease.

WHY BUSINESS LEASE? TO AVOID PAYMENT IN ADVANCE

Paying cash for equipment that will be used for years is like paying an employee for years of service in advance. Leasing your equipment is like hiring an employee. You pay employees a monthly wage for work produced during a given month. Leasing provides the same option by letting you pay for the use of a product as it produces over time.

WHY BUSINESS LEASE? TO USE THE EQUIPMENT WITHOUT PROFIT LOSS

Operating profits come from the use of the equipment, not ownership of it. Leasing allows payments to be made from the revenues generated by the leased equipment.