You rely on equipment and technology every day to operate and grow your business. But the value of those products comes from using them, not owning them. Leasing offers numerous advantages over other financing methods:

Retain Capital Strength:

Purchase the equipment and technology you need today while spreading your payments affordably across time. This allows you to reserve your capital for other day-to-day expenses. Because a lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, making you more attractive to traditional lenders when you need them.

Speed:

Leasing allows you to respond quickly as your need for equipment and technology arises. You can be approved for financing within hours through minimal documentation and you can have the equipment you need in operation and producing profits for your business, quickly and without hassles.

Flexibility:

As your business grows and your needs change, you can add to or upgrade your lease at any point through add-on leases or master leases. If you anticipate growth, be sure to negotiate that option when you structure your lease program. You also have the option to include installation, maintenance and other services, if needed.

Customized solutions:

Leasing allows you to structure a financing program that addresses your key business issues, including: cash flow, budget, transaction, and cyclical fluctuations. For example, some businesses request seasonal leases, which allow them to schedule their payments during their busiest months allowing them to better align their expenses and revenues on a monthly basis.

Tax advantages:

Write off up to $112,000 on your 2007 taxes. The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your corporate income. Consult your tax advisor about your specific situation.

Asset management:

A lease provides the use of equipment for specific periods of time at fixed payments. It assumes and manages the risk of equipment ownership.

Lease VS Loan

As a business owner, you know the importance of weighing all options when it comes to acquiring needed equipment and technology for your business. Whether you choose lease or loan financing, your decision will have a vital impact on the cash flow, asset management and budgeting aspects of your business.

Currently, over 80% of U.S. businesses lease finance some or all of their capital purchases. By taking a closer look at loan financing, and what your bank may not be telling you, it is clear why smart businesses leases equipment.

u Whose Money is it Anyway?

Banks typically require you to maintain a minimum account balance with them, up to 30% of the loan amount. In reality, they are loaning you 30% of your own money and they are charging you interest for it!

u The Fine Print

Banks will file a blanket lien against all of your assets. Additionally, banks can call the loan at any time, for any reason, without notice. With lease financing you are protected, only the equipment itself is secured as collateral and the financing agreement is locked for the term.

u Rigid Finance Options

Bank customers sacrifice flexibility when using their bank lines for equipment acquisitions. When financing with Direct Capital, each finance option is customized to meet the unique needs of your business.

u Weakening of Balance Sheet

With a bank loan the total finance amount will be listed as debt on your balance sheet. Leasing the purchase will allow for off balance sheet accounting, enabling you to treat your acquisition as a tax deductible operating expense.

u Inability to Effectively Budget

Based on the banks cost of funds, they can increase or decrease your payment from month to month. With lease financing, your payment is fixed for the term, allowing you to solidify your budget.

u Anything but 100% Financing

Banks rarely finance essential intangible costs, including; training, delivery, installation or maintenance agreements.

The good news is that you currently have a membership with Direct Capital that entitles you to a simple, fast and cost effective lease financing option for any new purchases you are considering for Scaffolding Depot.

Why Lease?

Reduces Initial Cash Outlay

Easier Credit Terms

May Not Affect Future Financial Operations

Potential Tax Advantages

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