Advantages of Leasing vs. Purchasing

Conserves Capital: Allows you to use your valuable capital as an investment in other aspects of your operation.

Improved Cash Flow: Allows you to pay for the equipment as you use it today, using tomorrow’s dollars to generate income for your business.

Fixed Payments: The payments will never change.  Variable bank rate loans frequently do.

Financing: Many bank loans require a substantial deposit or down payment.

Tax Advantages: Often makes leasing less expensive than an outright purchase of bank financing.  You save money because leasing costs usually come from pre-tax dollars.

Preserves Bank Lines: Your credit remains available for income producing investments.

Longer Terms: Many banks only lend money short term, usually 12 to 36 months.  With leasing  options, the term can be as long as 72 months.

Simpler than Bank Loans: Leasing programs and procedures are specially designed to take the red tape out of financing capital equipment for business.

Flexibility: Leasing provides you with greater structuring flexibility.  It provides you with the opportunity to be flexible in areas such as the length of the term, the amount of advanced payments, billing frequency, etc.