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Leasing has become the preferred method of acquiring equipment among businesses. Over 80% of American businesses
lease at least some of their equipment and nearly 90% say they would choose to lease again. In 2001, approximately
$280 Billion worth of equipment was leased.
Leasing works for any type of business!
Every imaginable type of business and/or organization throughout the world leases their equipment, including
proprietorships, partnerships, corporations, government agencies, religious and nonprofit organizations.
Make better use of your money!
Conventional loans usually require more money upfront than leasing and often have restrictive loan covenants.
These loans usually require a 20% to 30% down payment. Leasing generally requires only minimal advance
payments. Profitability is derived from the use of equipment, not ownership.
Finance 100% of your costs!
In most cases, the full cost of the equipment, plus the shipping, installation, training, consulting, software
hardware and maintenance can be included in the lease. This spreads the cost out evenly over the term
of the lease and frees your capital to work harder for you in other opportunities. An average company will earn
12% on every dollar of working capital they retain.
Tax advantages!
Depending on the structure of the lease, the entire monthly payment may be written off as a deduction
over the whole term of the lease.
No Down Payment!
The first or first and last payments under the lease are all that is generally required to start a lease.
Provide a hedge against inflation and protect credit lines!
As inflation increases, monthly payments remain the same. Pay for today's equipment with tomorrow's
money. In effect, paying with cheaper dollars. Bank credit lines remain intact for other needs.
Avoid the risk of your equipment becoming obsolete!
Ownership forces you to run the risk that new technology will make your equipment obsolete within a few
years, leaving you with equipment that no longer meets your needs. Leasing allows you to replace or
upgrade your equipment to keep your business competitive.
Improve your cash flow!
The fixed payment nature of a lease eliminates the uncertainty about future cost of the leased equipment and allows you
to forecast, budget and plan more accurately.
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