Leasing Benefits

There are many good reasons why your business should be considering leasing equipment. Here is a summary of the main reasons of why the businesses we deal with like leasing.

Conserves Capital

Leasing eases the strain on working capital by providing 100 percent financing without a down payment. Your lease payments are simply an operating expense. Therefore your existing lines of credit remain intact for your other business needs.

Cash Flow Management

Leasing smooths cash flow and budgeting by providing regular fixed repayments. You have the benefits provided by the equipment whilst you make you payments. Payments can be structured to meet business cash flows with monthly, quarterly, semi annual or annual payments.

100% Tax Deductible

Lease payments are a 100% tax deductible business expense.

Off-Balance Sheet Financing

Lease payments are an operating expense they are not capitalised to the Balance Sheet and eliminate asset accounting and depreciation schedules.

Fixed Payments

Your payments are fixed for the term of your lease protecting you if interest rates climb.

Leasing vs Buying

Benefit Finance Lease Buy Operating Lease
No upfront capital requirements
yes no yes
No lump sum payment
yes no yes
Cash flow, fixed regular payments
yes no yes
Upgrade / Replacement during term
no no yes
Equipment and maintenance through a single payment
no no yes
Ability to exchange equipment between different contracts and times
no no yes
Disposal
no no yes
No equipment residual risk no no yes