We can help you find leasing
There are sometimes advantages to leasing. We don't finance purchases ourselves but we work with a reputable company that specializes in leases of A/V gear to businesses and we can help you through the process.
Should I lease, buy or finance? Things to consider...
Conserves Working
Capital
Leasing requires alower down payment
than other types of financing. Available cash can
be used to meet working capital needs or invested
in appreciable assets. Installation, software,
disposables, etc., can be included in the lease,
decreasing out of pocket expenses.
Is Convenient and
Flexible
Lease terms range from 12 to 60 months
depending on equipment type. Rental contracts,
operating leases or capital leases are available.
Leases seldom have the restrictions of conventional
financing. Specialized payment schedules,
customized ownership options, and master lease
agreements can be included in a lease program.
Lease payments are fixed during the term of the
lease.
Frees Up Bank
Credit Lines
Leasing leaves credit bank lines open
and available for other business needs.
Is A Hedge Against
Inflation
Lease funding provides 100% initial
financing, and lease payments are made with
increasingly "cheaper" dollars. Leasing costs, when
adjusted for inflation, decrease in the latter
months of the lease term.
Avoids Obsolescence
Leasing avoids equipment depreciation
risks. Shorter leases transfer a portion of the
technology risk to the lessor. The equipment budget
is managed more effectively while allowing use of
the latest equipment.
Relieves Budget
Constraints
Operating leases and rental contracts
can be structured so that payments are made with
operating rather than capital funds. Leased
equipment can be purchased should capital become
available. A percentage of the lease payments can
be credited toward the purchase price.
Allows Off-Balance
Sheet Equipment Funding
Operating leases structured in
accordance with generally accepted accounting
principles do not affect the balance sheet of the
lessee. The lease payments are recorded as rental
expenses. The use of leased equipment, which is not
recorded on the balance sheet, has a positive
effect on operating ratios.
Matches Expenses
Against Revenue
Leasing makes perfect sense in the
acquisition of revenue producing equipment.
Equipment expense is paid as the equipment earns
revenue. Purchasing revenue-producing equipment is
like hiring a new employee and paying several years
worth of salary in advance.
Reduces Expenses
Leased equipment can reduce expenses
especially when replacing used equipment or adding
technology.
Increases Bottom Line Profits
Revenue is produced from the wise
employment of people and assets. An arbitrary
decision to "own" all equipment and never consider
the benefits of alternative methods of acquisition
could actually result in reduced revenue generating
capacity.
Compare
Leasing Versus Bank
Financing
- Easier
- Takes less time
- Frees up credit lines
- Adds other credit lines
- Fixed rate financing
- Lower down payments
- Allows off-balance sheet financing
Leasing Versus Cash Purchase
- Maintains capital reserves
- Equipment is paid for as it generates revenue
- Decreases expenses
- Allows use of latest equipment
- Additional equipment can be acquired more easily
- Leasing your equipment may allow you to realize some special tax advantages.
Leasing is subject to credit approval and the final rates are based on your credit history.
Click here to download lease application. LFCIquickAppAV