Equipment Leasing in 3 Easy Steps

Lease to Own

Step 1: Choose Your System Step 2: Submit an Application Step 3: Review and Approve Your Proposal

Advantages of Equipment Leasing

Business and industries often use leasing as a tool for acquiring needed equipment or furnishing. It is a popular means of getting the things you need to run your business without having to pay a large sum of money at once. That means you'll be able to invest more money in other ventures.

Some advantages of lease financing are:

  1. Conservation of Capital:
    Cash remains untouched and available for other profitable purposes.
  2. Tax Savings and Improved Cash Flow:
    The full cost of leasing can often be treated as an expense deduction for income tax purposes and may result in a larger tax deduction than if you were claiming a depreciation expense. This can mean substantial tax savings and improved cash flow.
  3. Better Terms:
    Lease payments usually can be extended at fixed rates over a longer period of time than conventional bank financing and without large downpayments.
  4. Easier Allocation of Cost:
    Costs of individual equipment or systems can be better analyzed, controlled and reduced because of direct allocation. No hidden costs.
  5. Leaves Bank Lines Untouched:
    Normally, a lender will not reduce a line of credit when equipment is leased. However, when the equipment is financed, it consumes available credit.
  6. Cleaner Balance Sheet:
    Lease payments may be entered as footnote items on a balance sheet and may not increase your liabilities as a loan does. This is important to obtain additional credit.