Why does Leasing make sense? Free up Working Capital: Instead of exhausting cash accounts on fixed assets, you are free to use your capital for other income producing expenses. Leasing will improve cash flow by enabling increased productivity while keeping your funds liquid. Unlike other forms of financing, leasing does not require a large down payment. Protect Your Line of Credit: Lease payments have no impact on your bank credit lines. Leasing does not show up as a liability on your balance sheet, thus preserving borrowing power for other business needs – inventory, payroll, etc. Eliminate Obsolescence: Lease new up-to-date equipment and maintain a competitive edge. Gain Tax Advantages: As a business expense, lease payments are 100% tax deductible as opposed to only depreciation and interest deductions for bank financed equipment, resulting in a full write-off over the term of the lease. Lower Monthly Payments: Allow you to acquire additional equipment when you lease because lease payments may come out of several budget years. Flexible programs to meet your needs. Option (Fair Market Value): This plan offers the lessee an option to purchase the equipment at a very favorable fair market value, or you may return the equipment with no further cost, or renew the lease for an additional length of time. $1.00 Buyout: This allows the lessee to purchase the equipment at the end of lease for only $1.00. © The Tool Warehouse
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