Is leasing the right decision for your business? A lease is a financing agreement that can be structured to meet specific needs. To decide if leasing is the best option, you need to first ask yourself:

• How important is conserving our cash or bank credit lines?
• What will our equipment or technology needs be in the future?
• What is the most efficient way to pay for equipment or technology?
• Do I want to pledge other assets or my home as collateral to the bank?

For most businesses "Cash is King", meaning cash is the most important resource for its future. Other businesses are constantly changing their equipment and technology due to obsolescence, so a lease with continuous upgrades is a smart option. Leases are not loans, they are a type of rental agreement so only the equipment is collateral. Many bank loans require large down payments and additional collateral.

Types of Leases: Finance and True

Finance leases are best if you plan to keep the equipment at the end of term. You have the option to purchase the equipment for a nominal fee. The lease typically lasts close to the useful life of the equipment.

True leases do not span the full expected life of the equipment. The payments are lower than the finance leases because the equipment can resell the it. At the end of the term, you have the option to let go of the equipment or purchase it at market value.

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Benefits

• No Down Payment
• Tax Advantages
• No Financials
• Does not adversely affect your borrowing ability in the future.

Payment Options

• Fixed monthly payments.
• Skip lease: Structure allows you to skip payments during slow months without being penalized.
• Step-up: Structure that allow companies with limited cash to handle increased lease payments over time, and keeps the payments low in the beginning, then increases according to the schedule agreement.
• 60 – or 90- day deferred: Structure allows you to defer first payment for 2 or 3 months.

Lease Term

Lease terms range from 60 to 120 months.