Benefits of Leasing

How Leasing can Benefit the Lessee?

No Cash Outlay/Preservation of Capital
Instead of tying up cash in equipment, the Lessee can use their cash for other short term needs.

Preservation of Credit Lines
The customer does not have to use their credit lines from their bank, thus keeping those lines available for other projects.

Tax Benefits
With a Fair Market Value Purchase Option at the end of the lease term the customer should be able to expense monthly lease payments, thereby lowering their tax liability.

Cost Management
Because all costs associated with the new equipment can be included in the lease (installation, service contracts, etc.) the Lessee can accurately forecast its cost on a monthly basis and tie the equipment's period of benefit to the period of payment. Also, since the lease represents fixed-rate financing, the Lessee can lock in payments now.

Flexibility
At the end of the lease term, the Lessee can opt to purchase the equipment or lease new equipment that may better suit their needs. With this flexibility, the Lessee can always access the latest technology. This can also reduce the risk of obsolescence.