About Equipment Leasing

A lease is a contract in which the Lessor (the party who owns the equipment), gives the Lessee (the party who obtains use of the equipment in exchange for one or more lease payments), the exclusive right to use its property or equipment for a specified period of time.

Benefits of Leasing:

100% Financing
Leasing requires little or no down payment. You can even finance shipping, installation and other charges.

Preserve Working Capital and Lines of Credit
Because little or no down payment is required, you preserve your company’s working capital and lines of credit for other uses.

Improve Purchasing Power
Typically you can get more expensive and sophisticated equipment than you would with a loan or cash.

Fixed Monthly Payments
Fixed monthly payments mean simplified planning, budgeting and accounting.

Potential Tax Advantages
In some cases, you can deduct 100% of your lease payment as a business expense, giving your company substantial tax deductions from pre-tax earnings and helping you avoid the Alternative Minimum Tax.

Avoid Restrictive Covenants
Leasing typically doesn’t contain restrictive covenants often included in many loan and bond documents.

Inherent Flexibility
There are numerous types of leases, and each can be customized to assist you in acquiring the equipment you need.

Equipment Obsolescence
You don’t have to worry about unloading obsolete equipment when it’s time to upgrade. Leasing allows you to refresh outdated equipment periodically.

Improved Efficiency and Production
Having the right equipment is essential to running a productive business. With leasing, you obtain the equipment you need to compete in today’s business environment.