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ADVANTAGES OF EQUIPMENT LEASING

1. Increase operating capital.
2. 100% financing.
3. Lease payments can be made in pre-tax dollars.
4. The opportunity to add new equipment or accelerate the replacement of older inefficient machines.
5. A hedge against inflation and rapid obsolescence of equipment. Lease payments are made in cheaper future dollars.
6. A way to avoid the necessity of selling machines no longer needed.
7. Simplifies accounting and eliminates confusing depreciation reserve schedules.
8. Leasing gives you the immediate use of the equipment with no expensive capital outlay; thereby freeing up cash for more productive uses.
9. Convenience and flexibility in finance structuring.
10. No significant down payment or compensating cash balances.
11. Service and supplies can be included in your lease figures.
12. Easier budgeting and planning for monthly expenses.
13. Additional financing source.
14. Leasing eliminates some of the red tape that normally accompanies capital appropriations.
15. Leasing does not affect balance sheet ratios.
16. Let the revenue generated by the equipment make the payment. (Would you pay an employee in advance?)

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