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Benefits of Leasing
Leases are extremely flexible:
- You pick the vendor
- You pick the equipment
- You pick the term
- You pick the end of term option
- You can even pick a payment plan that matches your cash flow!!
Leases have fixed monthly payments that allow for accurate budgeting and cash flow forecasting.
A small capital outlay gets you the equipment. Generally to acquire the equipment through a lease, there is an initial cash outlay equal to two payments, which is held as a security deposit. The security deposit is refundable at the end of term once the terms and conditions of the contract have been fulfilled.
With leasing 100% of the equipment cost is financed. No need for a down payment or a cash outlay for shipping and installation.
Leasing is quick and simple. Once we approve the transaction and you sign the lease agreement, you can have the equipment as soon as you need it.
Some leases eliminate the risk of technological obsolescence by shifting the ownership to the leasing company.
By choosing a short term Fair Market (FMV) lease, it allows you to keep on the cutting edge of technology by keeping the monthly payment low and allowing you to return the equipment at the end of the term for new equipment. Additionally, if you need to upgrade during the term of the lease, we can offer a discounted lease buyout and roll it into your new lease.
All leases allow for some or all of the payment to be a tax deduction.*
- FMV Leases are designed to allow the entire payment to qualify as an operating expense allowing your taxable income to be reduced by the sum of the payments made in the tax year.
- One Dollar Out Leases are designed to allow for the equipment to be depreciated and the interest portion of the payment to be a tax deduction.
On a present value after tax analysis, leasing may be the least expensive method to acquire the equipment. CALL US FOR CUSTOM LEASE ANALYSIS.
Leasing maintains your ability to borrow from your bank and keeps your lines of credit available to use for income generating investing, such as financing inventory.
Leasing allows you to add equipment to your current lease and have everything end at the same time. All benefits of leasing are passed through to the addition.
A good pay history with a leasing company should be considered as an intangible asset for any business owner. Leasing companies are always ready to lend money to their customers when banks sometimes are unable or unwilling.
* Please seek the advice of a tax/accounting professional to evaluate your specific lease structure (available through Lion Business)
Call today 1-813-653-3329 or click for email to have a leasing representative contact you.
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