Considering Leasing

December 4, 2009 by  
Filed under Blog, Considering Leasing

Five Causes to Consider Leasing

1. Growth in Cash Flow and Return of Assets

Since leasing provides you with full financing, minus the down payment, you can preserve your cash assets which could have been used to purchase your capital equipments in the first place. What’s great is that you can schedule your lease payment to align with your income flow, which will not over-burden you, especially when funds are short. Also, a leased asset will not appear in your balance sheet, which means that you will have better revenue reports which are measured by company managers. Since sales tax and other forms of taxes are paid out together with the monthly lease payment, you can simply preserve your capital asset.

2. Preservation of Existing Credit Lines

Since you don’t pay a down payment for your third party lease, you then allow new credit lines to enter, as well as preserving your existing ones. Your credit lines are comparable to your cash reserves and you need to maintain it to build your inventory and financial sheets.

3. Helps Hold Your Money in Place

Since leasing can be tailor-made to suit your budget, you can choose how you pay, depending on your estimated financial returns. Most leasing choices are based on fixed rates which protect you against inflation rates. Leasing also helps you allocate a fixed amount of payment every month which is easier than making a capital budget plan approved. You can even use the income made from the use of new equipments you have acquired to pay for your lease, making money work for your business efficiently. When your money is kept in place, this can also mean more buying power for your business.

4. More Flexibility for Your Finances

To consider leasing means to have various types of options for your buys. With leasing, you can easily upgrade, add specifications, or deal your existing capital equipment. Technology is the fastest asset that can depreciate and go outdated in such a short time and many fear the risks of losing their equipment value upon sale. For this, leasing puts a distinction between what your equipment cost and what it can pay you, making you avoid this pitfall.

5. Tax Gains

Leasing can be your new ally when it comes to getting tax breaks where you can deduct your operating expenses. You need to talk to your tax or legal expert for advices on potential tax breaks you can have on your lease.

In the end, leasing gives you more buying ability, helping you shorten your initial business price. On top of these, you still get to own state-of-the-art equipments of your choice. With more cash and available equipment ready for your new business operation, you can definitely never go wrong with a leasing choice. This is why many companies have chosen leasing as their means of making ends meet in these tough and uncertain economic times. Maximize Your Choices!

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