2. Preserve borrowing capacity: Companies and Professionals utilizing their short term credit lines to acquire equipment will in essence be stealing from their future growth. Credit lines are an invaluable asset for meeting seasonal borrowing requirements or to take advantage of unforseen business opportunities. A company that has committed the bulk of its line to equipment purchases might lack the financial flexibility it needs if called upon.
3. 100% Financing: Leasing offers 100% financing without any downpayments, trade-ins or gimmicks.
4. Off balance sheet financing: Lease expenses if structured and documented correctly do not necessarily have to show on the balance sheet as a liability.
5. Tax Advantages: The Wall Street Journal recently printed that "Leasing" offers one of the only loopholes left open in the new "Tax Reform Package". For example, if properly documented a piece of equipment that purchased outright must, according to new depreciation schedules be depreciated over 5-7 years can instead be expensed in anywhere from 2-5 years, thus providing a much faster write-off period and more of a Tax Shelter for your hard earned profits. Furthermore, accelerated depreciation is an Alternative Minimum Tax preference item (A.M.T.) and operating expenses are not. (Please consult your accountant or financial professionals for further details.)
6. Overcomes obsolescense: The lessee has the ability to return the equipment at the end of the lease term and can contine to lease state of the art equipment.
7. Leasing offers: Creative flexibility with regards to term, payment amount, purchase options, etc...
8. Leasing is: Less expensive than outright purchase of equipment when the loss of return on your hard earned Investment Capital is factored in. Use other peoples money to acquire the use of depreciating assets and use your money to buy and own appreciating assets. By following this simple time honored rule you will always be receiving a maximum return on your capital.