Leasing provides you with the use of equipment for an agreed upon payment. You pay for equipment as it is being used to generate revenue rather than cash upfront. This helps maximize the matching of income to investment.
Lease Payments may be fully deductible as a business expense. Leasing can also help you avoid Alternative Minimum Tax (AMT) liability.
Lease payments may be eligible for "off-balance sheet" treatment, where items are treated as expenses rather than Assets and Liabilities, improving financial ratios.
You may be able to include some or all of the expenses associated with equipment use, such as shipping, installation, or maintenance, into the lease agreement.
Leasing will not tie up valuable lines of credit you may need for expenses or to fuel growth and expansion.
Leasing allows you to design payment structures to meet budgetary requirements or seasonal cash flows. Lease terms can range from 12 to 60 months with flexible renewal options.
At the end of your lease, you can purchase the equipment according to the predetermined purchase option, upgrade to new equipment, renew the lease at substantial savings.