Profits are generated from using equipment ... not owning it ...
Advantages of Leasing
- · Fixed monthly payments
· Preserve your bank credit lines
· Offers 100% Financing
· Improve cash flow
· Benefit from smaller capital outlay
· Avoid ownership dilution
· Simplify your cost accounting
· Gain more production
· Hedge against obsolescence
· Payments may be tax deductible as an operating expense
Your Working Capital
Working capital should be free to work for you to generate earnings. You wouldn't pay an employee five years in advance - why do it for your equipment?
Through leasing, it's possible to have the equipment you need when you need it. At the same time, you minimize obsolescence because lease contracts are directly related to the useful life of the equipment.