Leasing and Financing
We can help you with your financing needs.
Take Advantage of Tax Benefits
Monthly payments are often fully deductible for tax purposes, resulting in a lower after-tax cost than conventional financing.
Preserve Existing Capital
Financing helps organizations preserve existing capital, retaining funds to be used in profit-generating activities.
Preserving Existing Credit
The financing program allows your existing credit lines to remain intact for other borrowing.
Why Leasing is More Cost Efficient
Contrary to popular belief, leasing equipment is more cost efficient than paying cash 99% of the time.
When a business pays cash for equipment, they are paying with “post tax” dollars, which essentially is like adding 35% (avg. marginal tax rate) to the sale price. Leasing allows you to use “pretax dollars” when purchasing equipment. The leasing company owns the equipment until paid off, and you are agreeing to a long-term rental agreement. Your lease payment can be written off as an expense.
Another factor is inflation. A dollar today is worth more than a dollar will be in the future. Therefore, leasing enables a business owner to retain a more valuable dollar today while making lease payments with a weaker dollar tomorrow.
Studies show that the average return on working capital is 10%. When you choose to use existing funds to purchase equipment rather than retaining those funds, you lose this opportunity. Most investments on equipment are considered income generating investments. Therefore, leasing enables you to generate a return on the working capital you preserved while generating income with the use of the equipment.