Leasing has become a major source of financing in today’s
competitive market. Approximately 80% of all U.S. firms currently
lease equipment, and leasing now accounts for one-third of
externally-financed equipment.
American companies today use leasing as a practical and cost-effective
method of acquiring equipment needed to run their
business operations. With leasing, managers can maximize productivity and profits
through the effective use of assets.
Conserves working capital and credit
lines ~
Leasing provides another source of credit that is specifically
designed to accommodate equipment, furniture and vehicle acquisitions.
Leasing does not tie up cash in equity, so working capital
and bank lines will remain available for future expenditures
and investments.
Total solution financing ~
While other financing options may require large down payments,
most leases require an advance of only one or two payments.
In addition, associated soft costs such as software, training
and installation can often be included in the cost of the
lease.
Better equipment management ~
Leasing provides a viable alternative to cash purchases
of capital assets. Managers can maximize returns by
investing in assets that produce positive financial results
for their organizations. By utilizing Lease Finance Group’s
Master Lease Program, you can avoid the burden of spending time and
money to find a source of funds for each acquisition.
Fixed payment financing ~
Unlike bank lines of credit featuring variable rates, lease
payments are fixed. These fixed lease payments protect
companies against rising interest rates and lessen the
impact of inflation.
Tax benefits ~
True lease payments are generally 100% tax deductible
as an operational expense. This means that leasing
can
save on taxes because the cost may come out of pre-tax
dollars instead of after-tax profits.
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