Equipment Leasing Blog

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Thursday, February 11, 2010

Equipment Leasing - When is the time right?

  • When the risk is high that equipment will become outdated very quickly.
    • Equipment leasing lets you upgrade your equipment on a regular basis. This eliminates the aggravation of owning out-dated equipment.
  • When you need to conserve your cash and working capital.
    • With equipment leasing, your cash isn't tied up in equipment. Instead, money is available for opportunities such as marketing, working capital, or seasonal cash flow needs.
  • When you need to preserve your credit lines.
    • Safeguard your existing lines of credit and borrowing availability with equipment leasing. You will leave your credit lines untouched and ready to use for operational financing needs or unexpected expenses.
  • When you can't afford the luxury of ownership.
    • Owning equipment really is a luxury, and in many cases, an unnecessary one. Equipment leases allow new equipment to pay for itself as you use it over time. Profits are generated by the use rather than the ownership of equipment.
  • When you're ready for tax benefits instead of loan payments.
    • Payments towards your equipment lease may be fully tax-deductible as an operational expense. Tiger Leasing has a Tax Savings Lease Calculator to help you find out the tax benefits of your new equipment lease.
  • When you have budget limitations.
    • In some cases, limited budgets can restrain business owners from purchasing the equipment they need. Equipment leasing allows for quick budget approval thanks to its small monthly expense. A lease can fit even the tightest of budgetary constraints.
  • When you need to work with a flexible institution.
    • Banks are not as flexible as equipment leasing companies. Equipment leasing companies can create an individualized leasing programs for your company.
  • When you don't have the funds for a down payment.
    • Typically the up-front costs for a lease are just the first and last monthly lease payment. Unlike a down payment for a purchase, these payments are smaller and are applied to your total lease payments. Additional fees may apply, but these are minimal when compared to many down payments necessary for purchasing equipment.
  • When you like to cut through the red tape.
    • Working with a reputable lessor is almost always fast and easy. There are simply fewer governmental and legal obstacles to address with an equipment lease. This is especially true if you wish to extend your commitment beyond the typical 12 to 36 months.
  • The equipment will depreciate in value quickly.
    • You can arrange at the end of your lease to purchase the equipment for its fair market value (or an agreed upon amount), continue leasing, lease new equipment or return it.

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posted by Tiger Leasing @ 10:04 AM

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