The Benefits of Leasing
You rely on equipment and technology every day to operate and grow your business. But the value of those products comes from using them, not owning them.
By leasing, you transfer the uncertainties and risks of equipment ownership to the leasing company, which allows you to concentrate on using that equipment as a productive part of your business.
Leasing offers numerous advantages over other financing methods:
Retain Capital Strength
Leasing allows you to purchase the equipment and technology you need today while spreading your payments affordably across time. This allows you to reserve your capital for other day-to-day expenses. In addition, because a lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, thus making you more attractive to traditional lenders when you need them.
Leasing allows you to respond quickly as your need for equipment and technology arises. You can be approved for a lease within hours through minimal documentation and you can have the products you need in operation quickly, without hassles.
As your business grows and your needs change, you can add to or upgrade your lease at any point through add-on leases or master leases. If you anticipate growth, be sure to negotiate that option when you structure your lease program. You also have the option to include installation, maintenance and other services, if needed.
Leasing is an extremely attractive option for all your computer hardware and software purchases because technology becomes outdated very quickly. With a lease, your risk of getting caught with obsolete technology is lower because you can build upgrades and add-ons into the lease.
Leasing allows you to structure a financing program that addresses your key business issues, including: cash flow, budget, transaction, and cyclical fluctuations. For example, some businesses request seasonal leases, which allow them to schedule their payments during their busiest months - allowing them to better align their expenses and revenues on a monthly basis.
Write off up to $100,000 on your 2003-2005 taxes. The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your corporate income. Consult your tax advisor about your specific situation.
A lease provides the use of equipment for specific periods of time at fixed payments. It assumes and manages the risk of equipment ownership. At the end of the lease, the lessor may dispose of the equipment.