Industries Served
Vendor Partner Programs
Leasing BenefitsPartner ApplicationCustomer ApplicationNewsAbout UsCareersContact UsHomeLeasing Benefits
- Flexibility. Without a doubt, leasing can provide greater flexibility to a customer. Here are a few ways:
- Easier to Avoid Obsolescence. Under a lease, a customer’s business will not be tied up long-term with out of date equipment. A lease provides greater flexibility for customers to more frequently upgrade their equipment with the necessary advances so that they are not “stuck” paying for antiquated equipment.
- Multiple End-of-Term Options. There are several options available for a lessee at the lease termination that depending upon the customer’s situation can be very beneficial to his business. He can return the equipment, continue the lease or purchase the equipment.
- Easier Down Payment Options/Conservation of Capital. Most leases are structured with very little money down, perhaps only first and last months payments whereas purchase contracts usually require more down payment. This frees up working capital for more productive business opportunities.
- Easier Forecasting. Because a lease is for a specified payment and a specified timeframe, it is easier for the customer to budget and forecast the obligation versus estimating the useful life, repair and maintenance expenses for a purchase.
- Tax Treatment and Benefits. Customers may be able to deduct the lease payments from their corporate income because the IRS generally does not consider an operating lease to be a purchase. Operating leases are generally treated as 100% tax-deductible business expenses paid from pre-tax earnings rather than after-tax profits.
- Immediate Write-off of Lease Payments. Operating lease payments may expensed monthly as the lease payment is made versus an annual depreciation allowance over a 5-7 year time-frame as required for a purchase.
- Balance Sheet Management. Since an operating lease is generally not considered a long-term debt or liability, it does not appear as debt on your customer’s financial statement, which has the effect of enhancing the balance sheet and making the customer more attractive to traditional balance sheet type lenders.