Why Do Customers Lease?
Your customer may choose to lease for a number of reasons. A large company may choose to lease for the tax incentives, where as a small company may choose to lease in order to conserve working capital. It is important not to predetermine for your customer if they are interested in financing. Give each and every one of your customers the option to decide.
Conserve Working Capital
Purchasing equipment can require large cash outlay. Many companies lease to conserve capital. Money is better spent for other day to day needs to keep the business successful.
Leases can be structured to meet the varied needs and financial goals of your business. Leasing can offer deferred payments, step plans, seasonal payments, no money down, etc..
Section 179 of the IRS code allows significant tax savings. Often, a monthly lease payment can be deducted as an operating expense since it is treated as a rental rather than a loan.
Additional Credit Lines
Lease approvals for equipment can establish an additional line of credit that does not effect your bank lines. You can lease just about anything needed to run your business.
Leasing Your Business Equipment Will Preserve Cash Flow
Profits generated from the use of the equipment are greater than the lease payments. Current cash can be used for other needs of the business.
Easier Than Bank Loans
Lines of credit can be established in a matter of hours with minimal information and no collateral. Leasing is convenient, quick, and easy. No long forms. 100% financing.
Many financing transactions have floating interest rates. Lease financing offers fixed payments, enabling you to budget and manage your dollars for a long time.