The Advantages of Leasing
In simple terms, a lease is a contract by which one (lessee) is given the right to use property that belongs to another (lessor), for a specified regular payment. Whether short term or long term, a lease ensures both the lessee and the lessor of tax benefits. The growing popularity of leasing as a financing option in the US is evident from the fact that eight out of ten businesses lease equipment.
Here's a look at some of the advantages of leasing:
Flexibility and Customization: A growth in your business may often signal a change in your needs. A lease will help you keep up with these changing needs by giving you the option to add new equipment or upgrade existing equipment whenever you feel the need; which means an end to 'obsolescence' for your company or firm. Lease terms can also be customized to suit individual business needs and budgets.
100% Financing: Generally, a lease requires you to make only the initial and last payments in advance, along with a small documentation charge. No up-front fees or security deposits are required.
Preservation of Working Capital and Credit Lines: A lease allows you to free up your capital for emergencies or business expansions. Similarly, you can also preserve your bank credit lines and credit lines with other depository institutions for emergency, A/R (accounts receivable) or inventory uses.
Improvement in Cash Flow: Monthly lease payments are generally lower than monthly loan payments, and no down payments are required with a lease. These two factors contribute to improving cash flow.
Ease of Equipment Disposal: If you are in a lease, equipment disposal is not your headache. As such, you can avoid the costs for removal, remarketing and environmental fees.
End-of-lease Options: On culmination of the lease term, you have these options: return the leased equipment, buy it, re-lease it, extend the lease, or lease different/new/advanced equipment.
For more information on equipment leasing, please contact Graphic Savings Group at 203.336.4034 or e-mail us at mail@graphicsavings.com.
Here's a look at some of the advantages of leasing:
For more information on equipment leasing, please contact Graphic Savings Group at 203.336.4034 or e-mail us at mail@graphicsavings.com.
Labels: equipment leasing, equipment leasing company, leasing, leasing company
posted by Graphic Savings Group at 7:35 PM
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