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Leasing
is much faster and easier than bank financing. We can
provide approvals in 15 minutes when you apply online. |
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A
true lease is 100% tax deductible. Bank-financed equipment
must be depreciated over a period of years and only the interest portion
is deductible. |
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Leasing
Can Accelerate Your Write-Offs. You can set the term of a
true lease to a shorter period than the IRS depreciation
schedule--effectively writing your equipment off FASTER! |
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No
restrictive covenants on future borrowing. Most banks attach
broad restrictions on your ability to seek future financing without
their express consent. |
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No
"cross collateralization". Banks often require that
you pledge additional collateral (assets). They do this by filing
"blanket liens" that effectively secure all of your equipment
and assets, not just the equipment you are acquiring. Your future
financial flexibility may be severely compromised. We file UCC
liens against our equipment only. |
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Lower
cash requirements. Banks "typically" require 10-25%
down payments while leases require only one or two payments in advance.
Sometimes, nothing down. |
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Lease
are 100% financing and can include soft costs like installation
and training, shipping, service contracts, etc. |
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No
"compensating balance" requirements. Most banks want
all of your commercial business including checking and savings accounts
with minimum balance requirements. Leasing companies do not. |
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True
leases are "off-balance sheet". Because you don't
own the equipment you needn't record the asset or the liability.
(This is important to many company's with bank lines that restrict debt
and liquidity ratios. |
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NO
business plan required and NO loan committee runaround. |
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Lease
Payments Are Fixed...Bank Rates Float. Lease payments are
easily budgeted expenses. |
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Lease
payments can be tailored to your cash flow patterns: with
step-up, step-down, seasonal, skip, deferred and other payment options. |
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