Leasing

“If it appreciates, buy it; if it depreciates, lease it.” J.P. Getty

Bearing in mind that cash and cash flow are the Kings of Business Finance, it makes sense to preserve both as often and as much as possible. Leasing instead of purchasing capital assets is a logical way to accomplish this goal.

Leasing is a cost-effective method of obtaining new capital equipment. Eighty percent of companies lease some or all of their capital equipment. Leasing is designed to be fast in the application process, simple in documentation and flexible in payment options.

Pay for equipment while it works for you. You wouldn’t pay an employee three years salary in advance. Why shouldn’t you do the same for your equipment? Leasing allows you to pay for equipment out of the revenue it generates during its use.

Acquire equipment for low money down. Receive delivery of equipment typically by putting down the first and last monthly payment. Generally, no large down payment or cash deposits are required.

Flexibility. Leasing provides for a variety of end-of-term options. Businesses can take ownership of the equipment, upgrade to the latest technology or extend their lease or return the equipment to the lease company.

Preserve cash and bank lines. Leasing is simply a financing product for capital equipment. By utilizing a lease to acquire equipment, cash and lines of credit are preserved for operating capital.

Tax deductible. Lease costs on capital equipment are deductible from your business taxes. 

Your equipment costs you nothing. Basically, if you spend $10,000.00 over a 4 year lease and deduct $10,000.00 over those 4 years from your taxable income, technically your equipment has cost you nothing.

Cost indications by lease term:
(examples only, please contact your leasing company for a specific quote)

24 months $45 - $50 per $1000 value
36 months $33 - $37 per $1000 value
48 months $26 - $30 per $1000 value
60 months $22 - $26 per $1000 value