What is Leasing?

Leasing is a financial method used by businesses to obtain equipment with little capital investment.
It is a commitment by the Leasing Company for a guaranteed payment amount over a period of years that cannot be raised. There are numerous types of leases available. Two of the most popular are:

1. A "True Lease" has set lease payments with a 'fair market value' or some other purchase option at the end of the lease term. You as the Lessee, are able to expense 100% of the Lease payments for income tax purposes.
2. A "Finance Lease" has set payments for a given length of time with a $1 or 'minimal' purchase option at the end of the lease period. With this product you actually own the equipment and for tax purposes, you take the depreciation and interest expense deductions.

Why Lease?

Profits are generated from using the equipment, not from owning it.
Some things never change, like the reason companies Lease equipment rather than own equipment.

Leasing Programs offer:

• Flexibliity in Payment Structure

• Improvement of Cash Flow

• Conservation of Working Capital

• Preservation of Bank Credit Line

• Reduction of Capital Outlay

• New Source of Funds