| Benefits
of Leasing |
| •
|
Conserve
Capital
Leasing enables you to direct capital to the highest profit
centers of your business. |
| •
|
Avoid
Large Capital Outlays
Retain your liquid capital and employ working capital where
the return is high. |
| •
|
Preserve
Credit Lines
Present lines of credit can be left open to meet other needs
of your business. Unlike bank loans, leasing does not require
compensating balances. |
| •
|
Facilitate
Budgeting
Small monthly rental, made out of pre-tax income, may be squeezed
into a tight budget. |
| •
|
Hedge
Against Inflation
Today's dollar is more valuable than tomorrow's dollar will
be. Pay with tomorrow's less valuable dollar. |
| •
|
Avoid
Obsolescence
Leasing makes it easy to upgrade your equipment, eliminating
inefficiencies and keeping your business ahead of the competition. |
| •
|
Pay
Its Own Way
Leasing allows you to pay for the equipment as you use it to
generate income. |
| •
|
Leasing
is 100% Financing
Unlike loans, leasing usually requires no down payment |
| •
|
Leasing
Improves Your Balance Sheet
Borrowed funds increase your liabilities, significantly affecting
your leverage ratio. Leasing increases your liquidity and can
provide off - balance sheet financing. |
| Lease
Vs. Loan |
| Leasing
|
Loan |
| •
|
Simple
Application Process - One Page Application |
•
|
Extensive
Documentation -
Requires Financial Statements and Tax Returns |
| •
|
100%
Financing - No Down Payment Needed |
•
|
Requires
a Sizeable Down Payment |
| •
|
Preserves
Credit Lines |
•
|
Reduces
Existing Credit Lines |
| •
|
No
Additional Collateral Required |
•
|
Often
Requires Additional Collateral |
| •
|
Flexible
Terms, Fixed Payments and No Ongoing Reporting Requirements |
•
|
Extensive
and arduous monthly and quarterly reporting stipulations |
| •
|
Easier
Budgeting |
•
|
Negative
Impact On Balance Sheet - Adversely Impacts Liquidity and Debt
Ratios |
| •
|
No
Upfront Fees |
•
|
Extensive
Upfront Costs - Points, Attorney Fees, Credit, Appraisal etc.
|
| •
|
Non
Cancelable Agreements |
•
|
Loans
Can be Called Prematurely and Are Subject to Frequent Term Extension
Reviews |
