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BENEFITS OF LEASING
AVOID LARGE CASH OUTLAYS AND PRESERVE
WORKING CAPITAL
Defer expenditures of capital, leaving it available
for other uses.
LEASE PAYMENTS ARE OFTEN TAX DEDUCTIBLE
Lease payments are frequently classified as a
rental or operating expense, and are often entirely
tax deductible. By leasing, you are paying for
your equipment with pre-tax dollars, as opposed
to after-tax profit, thus reducing your overall
taxable income.
100% FINANCING
Little or no down payment and fixed monthly payments.
AVOID TECHNOLOGICAL OBSOLESCENCE
Preserve the ability to upgrade the equipment
when needed.
OVERCOME BUDGET PROBLEMS
A budget which does not have room for large cash
outlays can accommodate a monthly payment.
FLEXIBLE TERMS
Rental investments can be structured to meet your
needs: 24-60 months, step-up, step-down, or skip
payments. Within certain limits, payment schedules
can be designed to coincide with earning generated
from equipment use.
LEASING DOES NOT TIE UP EXISTING LINES
OF CREDIT
You do not borrow money when you lease; therefore,
leasing won’t weaken your borrowing power.
AN ESTIMATED 80% OF U.S. COMPANIES LEASE
This figure covers a wide spectrum of industries,
from start-up companies to old, established organizations,
as well as the multinationals. Most likely, your
competitors are taking advantage of leasing.
PROVIDE A HEDGE AGAINST INFLATION
Leasing allows you to pay for equipment at today’s
price using tomorrow’s cheaper dollars.
LEASING OFFERS TAX BENEFITS THAT OWNING
DOES NOT
Discuss the tax advantages of leasing with your
accountant; they can prove to be significant.
ONLY BUY WHAT APPRECIATES AND LEASE WHAT
DEPRECIATES
Buildings, property and homes appreciate in value
- buy them. Office equipment, computers, and plant
machinery depreciate. Why own something that decreases
value? Lease it and upgrade at the proper time.
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LEASING MAKES SENSE
LEASING provides 100% financing.
Leasing normally requires no
down payment. Your initial investment is usually
the first
and last months payments.
LEASING conserves your lines
of credit. Because no money has
been borrowed, leasing can maximize your borrowing
power.
LEASING overcomes budget limitations
by allowing you to use
Equipment which was not planned for in your yearly
financial budget.
LEASING is popular! An estimated
80% of U.S. companies lease!
LEASING frees available cash
for potential investment
opportunities.
LEASING offers certain tax advantages.
A monthly lease
investment can usually be treated as an operating
expense. Terms offered for leasing: 24 months
to 60 months
TYPES OF EQUIPMENT YOU CAN LEASE:
Agriculture Equipment, Motor Vehicles,
Auto Repair Equipment, Office Products,
Communication Equipment, Point of Sale Equipment,
Computer Systems Printing & Duplicating,
Construction Equipment, Restaurant Equipment,
Entertainment & Recreational Equipment, Surveillance
Equipment,
Exercise and Beauty Equipment, Television/Movie/Sound
Equipment,
Laundry Equipment, Trucks/Trailers (Commercial),
Machine Tools, Vending Equipment,
Maintenance Equipment, Waste Management Equipment,
Material Handling Equipment, Wood Working Equipment,
Medical Equipment, Logging Equipment, Technology/Hardware/Software,
Testing & Measurement Equipment
FOR COMPANIES WITH PRODUCTS TO SELL -
LEASING INCREASES SALES
POSITIVE POINT OF VIEW
Leasing gives you a positive
sales point. There is no need for the customer
to seek financing for their purchase. Leasing
allows a one-stop shopping environment.
AFFORDABLE PURCHASE FOR THE CUSTOMER
The cost of the equipment is expressed as a monthly
lease payment. A figure like this is much easier
to relate to than a lump sum cost.
INCREASED SALES COMMISSIONS
AA Finance Group wants to approve as many leases
as possible for your sales representatives. This
translates into an increased number of sales,
as well as commissions, for each salesperson.
In addition, any leases sold on a rebate program
will substantially increase individual commissions.
FITS INTO THE BUDGET
Often, a lease will fall within the current operating
budget, whereas a capital expenditure may be out
of the question. The equipment can be available
fur use now, when it’s really needed, instead
of waiting for the next budget session to fit
the capital expenditure into.
SELLS YOUR EQUIPMENT FOR YOU
The customer buys your equipment because you have
supplied them with a very easy option to lease.
A signed lease contract and advance payment check
will finalize the transaction. The customer is
pleased with the quick, efficient service and
you enjoy the results of a sale and repeat business.
ALLOWS YOU TO SPEAK WITH THE DECISION MAKER
If the deal comes down to deciding whether to
lease or pay cash, you will most likely be speaking
with the decision maker. You have made the sale,
regardless of the manner in which the customer
chooses to finance your equipment.
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