Benefits of Leasing
| Cash Flow Maximization | Leasing provides 100% financing with no down payment required. Expenses such as delivery, installation and maintenance can be included as well. |
| Conserves Capital | Leasing allows companies to better manage their capital by employing available funds in the day-to-day operation of their business. |
| Flexibility | Equipment leases can be structured with variable payment terms including seasonal, step and deferred payments. |
| Fixed Rate | Lease payments are fixed for the term of the lease and therefore are not subject to inflation or rising interest rates. |
| Preserves Bank Lines | Leasing allows companies to avoid the use of short term bank lines, conserving borrowing capacity for financing inventory, accounts receivable and other short term needs. |
| Simple Documentation | Equipment leases do not contain restrictive financial covenants typically associated with bank term loans. |
| Tax Benefits |
In most cases, a business can deduct monthly lease payments as an operating expense.
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