• Conservation of Capital

Unlike traditional Bank financing which requires significant down payments, leasing typically requires only the first and last payments in advance.

• Tax Savings and Improved Cash Flow

The full cost of leasing can often be treated as an expense deduction for income tax purposes. This may result in a larger tax deduction than if you were claiming a depreciation expense. The end result is substantial tax savings and an improved cash flow.

• Better Terms

Lease payments usually can be extended at fixed rates over a longer period of time than conventional bank financing...without large down payments.

• Simplified Record Keeping

One monthly rental covers the entire cost of the machinery.

• Easier Allocation of Costs

Costs of individual machines or systems can be better analyzed, controlled and reduced because of direct allocation. There are no hidden costs.

• Leave Bank Credit Lines Untouched

Normally, a lender will not reduce an available line of credit when machinery is leased. If the machinery is financed, it consumes available credit.

• Cleaner Balance Sheet

Lease payments may be entered as a footnote item on a balance sheet and may not increase your liabilities as a loan does. This is important as you may seek to obtain additional credit.

• Helps Overcome Budget Limits

Since a lease is generally treated as an expense item rather than a capital expenditure, budget room can be made for monthly rentals.

• More Liberal Credit Criteria

In many cases, a lease can be completed when conventional bank financing is not possible.

• Convenience

Convenience is an important part of Leasing's appeal both from the vendor and end user standpoint.