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1. Purchasing Power. Equipment lease financing allows the lessee
to acquire more and/or higher-end equipment. |
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2.
Balance Sheet Management. Certain types of leases help
the lessee better manage the balance sheet and improve the overall financial picture, by
conserving operating capital and freeing up working capital and bank credit lines for
inventory, expansion and emergencies. See
Capital Lease vs Operating Lease |
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3.
100 Percent Financing. With equipment leasing, there
is no down payment. The term of the lease can be matched with the useful life of the
equipment. |
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4.
Asset Management. A lease provides the use of
equipment for specific periods of time at fixed payments. It assumes and manages the risks
of equipment ownership. At the end of the lease, the lessor disposes of the equipment.
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5.
Service Additions. Many
lessees choose to structure their leases to include installation, maintenance and other
services, if needed. |
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6. Tax Treatment. Leasing offers the option of deducting 100
percent of the lease payment as a business expense. See
Capital Lease vs Operating Lease |
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7. Upgraded Technology. Leasing
provides companies with the ability to keep pace with technology. The lessee can upgrade
or add equipment to meet ever-changing needs. |
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8. Specialized Assistance. Lessors are specialists in equipment
leasing and financing, and understand capital equipment markets. |
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9. Flexibility. There are a variety
of leasing products available, allowing the lessee to customize a program to address needs
and requirements - cash flow, budget, transaction structure, cyclical fluctuations, etc.
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10.
Proven Equipment-Financing Option.
Over 30 percent of all capital equipment in the United States is acquired through leasing.
In fact, eight out of 10 companies lease their equipment. |
