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Equipment Leasing versus Bank Loans and Cash
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With a True lease or an Operating lease, lease payments are made with pre-tax dollars.
Each dollar of working capitol earns 12% to 16% for the average company. It does not make sense to take cash with such true earning power and tie it up in a depreciating asset.
The use of equipment -not its ownership-produces benefits for business, and leases can be structured with options of ownership at the end of the lease term.
Leasing offers fixed rates over a fixed term, allowing a company to plan ahead, year to year.
When equipment is leased, borrowing capacity is preserved; existing credit lines remain untouched and available.
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Leasing Options
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Leases can be from 2 years to 5 years in length.
10% buyout at the end of the lease.
$1.00 buyout at the end of the lease.
Contact us to find out how we can help you with your equipment leasing.
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