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According to the US Department of Commerce,
80% of companies across the United States
lease part of their equipment inventory.
The leasing advantage:
- Preserve cash flow.
- Protect yourself from technical obsolescence.
- Leasing covers a full range of commercial equipment - new and used, industrial, mechanical, titled, and more.
- Financing is 100% covered, including maintenance and service contracts, freight, installation, software, training and other related fees.
- No sizable down payments. Only your first and last payments are required in advance.
- Leasing provides a low-cost option when you need new equipment now.
- No additional collateral required.
- Lease multiple pieces of equipment from multiple vendors and still make just one payment.
- Structured payments (seasonal, quarterly, step) are available to simplify the process.
- Tax advantages benefit your bottom line. Ask your financial advisor for more information.
Options in choosing a lease:
- Choose the type of equipment that’s right for your business.
- Exercise a purchase option at the end of your lease, or arrange for a buy-out.
- Determine the length of your lease agreement.
- Let us customize a lease that suits your needs.
Should I lease my equipment?
Deciding whether or not to lease follows a simple principle: You shouldn’t lease if you won’t benefit from the use of the equipment. For instance, you wouldn’t rent an office for $10,000 per month if your estimated monthly income were $5,000. The same thinking applies to a lease. You shouldn’t commit to a lease payment of $450 per month if the income brought in by that equipment wouldn’t exceed the output of cash.
Earn income while using someone else’s money:
Here’s how:
Your equipment cost = $ 20,000 (your out-of-pocket expense if you purchased this piece of equipment today). So, today you leave the vendor with a new piece of equipment, but your bank account is $20,000 lighter.
vs.
You leave your vendor with the same piece of equipment (leased) without touching your bank account. You do commit to a monthly payment, but here is how you profit from the equipment:
Gross profit resulting from the use of equipment $1,000.00
Monthly lease payment 450.00
Net profit from the use of equipment $ 550.00
Based on this example, you have made $550 and you own the equipment at the end of the term. As long as you are bringing in more than you are putting out, your lease is working for you.
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