Leasing is an alternative method of acquiring capital equipment that is needed to help a business grow and operate more efficiently. It requires a customer (Lessee) to make specific monthly payments over a fixed period of time (typically one to five years). Title for the equipment rests with the leasing company (Lessor) for the term of the lease.
At the end of the term, the lessee may exercise a purchase option provision, and title of the equipment is transferred at that time. Leasing has become so widely accepted that eight out of ten U.S. companies use it as their preferred method of financing. Companies that use leasing range from the Fortune 500 to family businesses.
When it comes to acquiring the equipment you have decided to purchase, you are faced with a decision process:
- Do I pay cash?
- Do I go to my bank?
- Do I lease the equipment?
- Get answers using Quick Tax Analysis Calculator!
Leasing offers a wide variety of benefits over paying cash or using a financing source, such as a bank. Leasing benefits may include:
- Low monthly payments
- Improves cash flow
- Preserves other credit sources
- Hedges against inflation
- Eliminates obsolescence
- And much more
For more details on the benefits of leasing or to read specifically about the tax benefits of leasing, follow these links. To find out what Leasing Resources, Inc. can lease, click here. To learn more about Leasing Resources, Inc.'s industry experience, click here.