Benefits of Leasing
♢ LEASING CONSERVES WORKING CAPITAL - Cash isn’t tied up in equipment. It’s for income-
producing investments. Sales, Marketing, Real Estate, Etc.
♢ LEASING IS CONVENIENT AND FLEXIBLE - Budgeting and bookkeeping are simplified; terms are
personalized, capital appropriations reduced, and most financing restrictions eliminated.
♢ LEASING FIGHTS INFLATION- Fixed rate lease costs remain the same, no matter how much prices rise.
You pay for the equipment with tomorrow’s potentially cheaper dollars.
♢ LEASE TERMS ARE GENERALLY MORE EXTENDED THAN BANK LOANS - There are no
compensating balance requirements, floating interest rates or restrictive covenants.
♢ LEASING PRESERVES BANK LINES - Credit remains available for other purchases.
♢ LEASING KEEPS EQUITY INTACT - There is no need to issue stock or sell part of the company to raise
capital, a common alternative method of generating expansion funds.
♢ LEASING CAN SAVE ON TAXES - Leasing cost can come out of before tax dollars, not after tax profits.
♢ LEASE FINANCING COVERS MOST EVERYTHING IN THE TRANSACTION - Shipping, Software,
Related equipment, Furniture etc.