Leasing protects established lines and conserves
capital
Maximum intelligent use of all credit facilities
available to a company maximizes efficient operations
and expanded opportunities as well as security for a
rainy day. Prompt payment to suppliers ensures their
current and future support and while businesses
frequently finance acquisitions through bank loans,
these loans may require up front equity in the form of a
down payment. Leasing provides 100% financing , and
avoids the necessity of pledging existing assets such as
inventory or receivables.
Leasing provides a hedge against inflation
A lease pays for today’s equipment with tomorrow’s money.
As inflation mounts, the lease costs remain fixed - in
fact, the lease pays less because the dollars in future
lease payments feature reduced purchasing power as time
passes.
Leasing facilitates budgeting
Corporate, divisional or departmental budgets can easily
be determined (as can operating projections) when
equipment and operating cost can be fixed. Leasing
eliminates the necessity of waiting for needed equipment
and many firms have found that small monthly lease
payments can be squeezed into the tightest of budgets.
Leasing helps avoid obsolescence
A planned program replacement enables a business to
obtain maximum efficiency from equipment and personnel.
Large capital outlays that replacement of purchased
equipment may represent are eliminated. This is
especially significant in these modern times of rapidly
changing technology where today’s “state of the art” may
be rendered obsolete in a short few years. Leasing
offers convenient and practical 2, 3, 4 and 5 years
terms.
