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It's a fact of the business world - Every type of organization in the world currently uses some form of equipment leasing, including sole proprietorships, partnerships, government agencies and non-profit organizations. According to a recent survey, over 80% of US businesses lease at least one of their equipment acquisitions and of those, nearly 95% say they would lease again. Currently, over 35% of all business equipment is leased.
A lease is a contractual arrangement in which a leasing company (known as the lessor) gives a customer (know as the lessee) the right to use its equipment for a specified length of time (lease term) for a specified monthly payment. Depending how the lease is structured, the customer may purchase, return, or continue to lease the equipment once this agreement expires |
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| -: Leasing Benefits :- |
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Equipment Leasing offers 100% financing and more liberal terms than purchase. The Equipment pays for itself with the profits it generates.
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Equipment leasing protects your company from having to keep obsolete equipment. Trade-in, add on, and upgrade capabilities, allow you to make the needed adjustments as your business grows.
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The cost of Leasing is a business expense, and is therefore Tax Deductible for the life of the lease. This is usually shorter than the normally allowable depreciation schedule. In most cases, tax benefits of a lease transaction are more beneficial to a company than an outright purchase.
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Financial Costs. Certain Expenses such as Installation, Freight, and sales tax may be included in a lease. Generally these items are not financed with conventional Borrowing.
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Rather than tying up your bank line of credit, or using cash operating funds, Leasing allows an additional line of credit.
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80% of Business and Government agencies now Lease at least some portion of their equipment. Many major Corporations acquire Equipment Exclusively through Leasing.
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| “If it appreciates, buy it. If it depreciates, lease it.” - J. Paul Getty |
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