The Possible Benefits of Leasing
...From the Customers Point of View

Conserve Working Capital - Capital may be put to more profitable uses such as inventory discounts or additional production capability.


Enjoy Tax Advantages - Properly structured lease payments may be tax deductible business expenses paid from pre-tax earnings instead of from-past profits.


Conserve Cash Flow - Iindividual lease payments are usually less than those of conventional loans because the terms are extended for longer periods of time and thus reduce demands upon cash flow. Leases can normally be structured so that the equipment can pay for itself.


Utilize Flexible Payments - Lease payments can be structured to follow a seasonal business pattern, can conincide with earnings made from the equipment's use, or to be made comparible to various methods of depreciation so you have maximum financial manueverability. Large inital down payments are usually avoided. The customer chooses the payment plan best suited for his needs.


More Accurately Forecast Expenses Against Income - Leased equipment costs are predicatable and can be measured against income the new equipment is expected to produce. It usually produces a profit instead of increasing operational costs.


Replace Or Modernize Equipment When
Needed
- Leased equipment is expensed over several years and is more easily replaced before obsolescence and physical deterioration take place, so devaluation is avoided.


Have A Hedge Against Inflation - Lease payments are based on the dollar's current value. These payments remain constant regardless of the future effect inflation has on currency value. Based on actual inflation percentages over the past 10 years, this may be your major reason for leasing. In effect, you pay each payment with cheaper and cheaper dollars compared to the dollar's current value.



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