 |
Conserves
cash and credit lines… |
| |
| |
Leasing
preserves working capital for use where it produces the
best return. It allows existing credit lines to be used
for peak short term needs. |
|
|
Long
term, fixed rate financing |
|
100%
Deductibility of rental costs |
|
Preserves
working capital for other use… |
| |
| |
Operating
leases are usually considered “off-balance sheet”
financing. Since the leased equipment is not listed as
an asset or liability, as is the case if you borrowed
the funds, the lease is not subject to restrictive covenants. |
|
|
Provides
financing with minimum upfront cash outlay… |
| |
| |
Leasing
allows 100% financing and eliminates the need for equity
financing. It permits the lessee to acquire the use of
an asset without making a down payment. Leasing allows
the acquisition of equipment at today’s cost while
meeting payments with tomorrow’s inflated dollars. |
|
|
Can
improve tax position… |
| |
| |
Leasing
offers attractive tax advantages beyond other methods
of financing. Since lease payments are not a tax preference
item, leasing minimizes a company’s exposure to
the Alternative Minimum Tax (AMT). |
|
