Sustains Their Competitive Edge
Your customers' businesses change almost daily. New competitors, new market forces, new financial strains, new organizational structures all add up to a need for flexibility. When your customers select new technology, they often wonder if it will be replaced by a faster, more powerful alternative next year, or even next month. Leasing helps them avoid the risks of ownership because they pay only for the use of the equipment. When your customers' lease expires, they can buy the equipment, trade it in for the latest technology, or simply walk away (depending on the type of lease they choose). With leasing, you can put a technological "safety net" in place, for your customers, so their companies competitive edge is never dulled by the process of moving up to faster, larger, or different equipment.
Conserves Capital
Leasing lets your customers keep capital free for investment or other business expenses instead of tying it up in fixed assets. Profits from these investments offset the cost of the lease -- your customers don't have to own an asset to make money using it.
Generates Profits
Your customers can reinvest the cash they conserve into inventory or new marketing promotions -- investments that can bring real profits to their businesses.
Preserves Existing Credit Lines
Leasing gives your customers a new source of credit for present and future needs, while their existing bank lines remain intact for other uses.
100% Financing
Unlike bank loans, leasing means no down payment, no deposits, and no required compensating balances in most cases. Installation, wiring, maintenance, taxes, shipping charges, and even software costs may be included in your customer's monthly payment.
Tax Advantages
Leasing offers important tax benefits that reduce your customers' cost of obtaining equipment. Depending on the type of lease your customers choose, they may be able to write off the entire monthly payment as an operating expense or capitalize the outlay.*
Budgeting Advantages
Leasing guarantees a fixed monthly payment amount for the length of the lease term, so it's easy for your customers to forecast their equipment expenses. It also gives your customers the flexibility to obtain unplanned-for-equipment -- operating budgets may easily accommodate a monthly payment, but capital budgets often can't be stretched to allow for an outright purchase.
Pay as They Go, Not Up Front
With leasing, your customers pay for equipment as they enjoy the benefits of using it.
Perfect Solution for Expanding Businesses
Your customers deserve access to the latest equipment and technology. Leasing protects them from being locked into owning equipment that may not meet their future needs. Your customers will have the flexibility to upgrade to the newest releases, features and functionality as they become available. Leasing is often the financing solution of choice for businesses that hesitate to buy equipment because they fear it will become obsolete before they can fully depreciate it.
*Be sure to have your customers consult with their own accountants or tax advisors regarding the tax consequences of their leasing and financing transactions.
Our leasing programs can be a common-sense complement to an existing bank relationship. Cash or working capital may be the ideal way to meet daily and short-term business needs, such as paying suppliers, meeting a payroll, or dealing with a business emergency. But working capital isn't ideal for funding longer-term assets like equipment. Take a look: |
