Benefits of Leasing Preserves credit A lease does not impact your existing lines of credit. By leasing you can preserve your existing lines for other important business needs. Bundle your solution Leasing allows you to "bundle" equipment and soft costs such as installation, software and training, and in some cases, maintenance, into a single lease contract and one convenient regular lease payment. Banks may require you to pay some or all of these costs separately and may not typically combine them in a loan package. Conserves capital Leasing eliminates the need for a down payment and/or other up-front costs required in a typical loan transaction. Leasing helps you to conserve capital instead of tying it up in fixed assets, as an outright purchase would. Makes it easier to budget and make unplanned purchases You can count on predictable, fixed regular payments for the entire length of the lease term, making it simple for them to forecast and budget equipment expenses. Latest Technology Keep up with new technology, equipment maybe upgraded to take advantage of new developments or increased needs. How leasing worksLeasing keeps money in your business rather than locked up in depreciating assets. It’s a cost effective alternative to paying cash, as the benefit to your business is the use of equipment rather than ownership.
Leasing is a financial transaction where the owner of the equipment (often referred to as “lessor”) gives the equipment user (referred to as “lessee”) exclusive use of the equipment or service for a period of time in exchange for a series of payments.
Instead of having a large outflow of cash these regular payments will help meet your cash flow and budgetary requirements over a time frame to suit you.
The main principle of leasing is that it allows you the benefit of using your products and services without the risks of ownership. By leasing you can optimize your productivity, maintain your competitive position whilst enjoying cash flow advantages. |