Benefits of Leasing
"If it appreciates, buy it! If it depreciates, lease it!" - John Paul Getty III
You rely on equipment and technology every day to operate and grow your business.
But the value of those products comes from using them, not owning them.
Leasing offers numerous advantages
over other financing methods:
- 100% Financing.
Equipment leasing covers 100% of the equipment costs including sales tax, service agreements, training and installation.
- Conserve Working Capital.
Purchase the equipment and technology you need today while spreading your payments over the useful life of the asset. This allows you to preserve your capital for other day-to-day expenses such as inventory, personnel and marketing.
- Increased Company Value.
Because a lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, making you more attractive to investors and traditional lenders when you need them.
- Flexibility.
As your business grows and your needs change, you can add to or upgrade through a master lease or add-on addendums.
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- Speed.
Leasing allows you to respond quickly as your need for equipment and technology arises. You can be approved with minimal documentation and have the equipment you need in operation and generating revenue for your business quickly.
- Customized Solutions.
Leasing allows you to structure a financing program that addresses your key business issues, including: cash flow, budgeting and any seasonal fluctuations.
- Tax Advantages.
The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you are able to pay for the equipment with pre-tax dollars rather than after-tax profits.
- Avoid Obsolescence.
Leasing is an extremely attractive option for all your computer hardware and software purchases because technology becomes outdated very quickly. Upgrade provisions can be added to most leases, which are a simple way to hedge against obsolescence.
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About the Leasing Industry
Every year the nation spends an estimated $1 Trillion in equipment and software. More than half (55%) is currently being financed and leased through companies such as First Star Capital. The financial advantages of leasing and financing versus purchasing out right have been experienced by hundreds of thousands of businesses all over this nation.
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