Leasing can offer numerous financial advantages, whether you’re a multinational corporation or a start-up.
Tax Deductible
Lease payment is deductible in your tax return as it is considered business operating expenses.
Covenient & Flexible
You can schedule your payments to coincide with your revenue stream and maintain accessible cash reserves. Reinvest the money you save by leasing to increase your inventory, supplement your marketing budget and grow your business.
Conserves Capital & Preserves Bank Lines
Leasing your equipment enables you to preserve valuable credit lines and cash resources for other operational needs of your company. Leasing serves as a responsible means to acquire the equipment you need today, without tying up precious and essential operating funds. Banks are often reluctant to grant fixed-rate equipment loans, tend to require larger down payments and compensating balances, and are unfamiliar with equipment purchases.
No Depreciation
By leasing but not owning, you no longer worry about disposal or depreciation on ICT assets when they are obsoleted.
Increases Your Purchasing Power
Leasing enables you to do more with less. Leasing stretches your available budget so you can acquire more equipment and the latest technology on the market. Optimizing your investment this way enables you to lower your organization’s overall cost of ownership while providing your employees with the tools they need to be successful.
Equipment Leasing Pays for Itself
Through leasing you pay the monthly payments with savings or increased profits derived from the equipment use. Would you pay your office staff their salary three or five years in advance? That is what you effectively do when you pay cash for your equipment.
100% Financing
Leasing provides 100% financing on the equipment you need, including software. Service contracts, training, sales tax, shipping and installation charges can all be incorporated into the lease structure, reducing the initial cash outlay.
Hedges Against Inflation
Through leasing, you acquire use of equipment at today’s cost, but your monthly expense payment is made with tomorrow’s inflated amount. This is the clearest advantage of leasing.
Eliminates Obsolescence
Advances in technology are being made quickly. Leasing enables you to have the latest technology without the fear of your equipment becoming obsolete. With flexible end-of-term options, leasing enables you to rotate and refresh your technology hardware and software equipment.
Overcomes Tight Budget Limitations
Many firms have found that small monthly payments for leased equipment can be squeezed into the tightest budgets. A lease helps justify a purchase to management who may have delayed a decision because of budget restrictions. Leasing enables companies to acquire equipment they might not otherwise have been able to afford.
Overcomes Equipment Disposal Issues
Environmentally friendly disposal of technology equipment is a growing concern. Legislation is increasing and the risk of fines and penalties for noncompliance is climbing. Leasing eliminates equipment ownership, thus transferring liability from your organization to the leasing company.
Your Company Grows With Reduced Risk
Through incremental monthly payments you can expand and evolve your business to meet the next competitive challenge. The idea behind your equipment acquisition is business growth. A good leasing partner can provide you flexibility and professional responsiveness to help you meet your business objectives.