With Sullair’s 0% Interest Lease, What’s Left to Question?
What’s in it for Business?
Fortunately, it’s easy to understand the benefits of leasing.
Here are 9 of the best.
1. Leasing Conserves Capital
Capital is best used for income producing investments, not necessarily equipment. With leasing the problem with equipment vs. capital is solved. Businesses get use of the equipment while capital stays where it belongs – working for the company.
2. Leasing Keeps Equipment Up To Date
Purchasing equipment is not only expensive but overall usage may increase or equipment needs may change in a few years. Leasing provides the ability to upgrade to the most current equipment as these needs change.
3. Leasing Protects Other Credit Sources
When leasing is used to acquire equipment, businesses are less dependant on other conventional credit lines, which can then be used for other income producing activities or investments.
4. Leasing Has Tax Advantages
Within the Federal Tax Reform Act of 1986, treatment of certain “preference” items raises the possibility of the Alternative Minimum Tax (AMT). Leasing may provide a means to minimize or even negate the impact of the AMT. (For further details consult a tax advisor.)
5. Leasing Simplifies Equipment Replacement
While leasing possession of and responsibility for the equipment is only for the lease term (unless the equipment is purchased at the end of the term). Leasing eliminates the need to store or sell the equipment at the end of its economic life cycle.
6. Leasing Simplifies Accounting
Leasing offers off-balance sheet financing in some situations. Accounting for a true lease agreement becomes little more than a matter of recording payments, thereby reducing accounting costs. (For further details consult a tax advisor.)
7. Leasing Provides 100% Financing
Leasing may include the entire equipment cost insurance and maintenance in the lease. Leasing often provides 100% financing, requiring only an advanced rental payment, thus eliminating such lender requirements as a down payment or a compensating balance on deposit.
8. Leasing Provides a Hedge Against Market Fluctuations
The lease signed today remains fixed in today’s dollar and at today’s rates. As a result businesses are better able to budget future operating expenses.
9. Leasing Offers Unmatched Flexibility
Equipment may be acquired piece-by-piece, lease-by-lease or can be tied all together in a master lease. Leasing provides for the option to purchase, upgrade, return, or extend an equipment lease at the end of the term.