BENIFITS OF LEASING

LEASING IS FLEXIBLE

With leasing, you can customize a program to address your needs and requirements—cash flow, budget, transaction structure, cyclical fluctuations, etc. For example, some leases allow you to miss one or more payments without a penalty, which is an important feature for seasonal businesses like those involved in commercial sign installation. 100% FINANCING means there is very little money down with leasing; typically, only the first and last month's payment are due at the time of lease signing. Since a lease does not require a down payment, it is equivalent to 100% financing.

LEASING IS FAST AND CONVENIENT

Leasing allows you to add or upgrade equipment under similar terms. Whether it's LED signs for your business or other essential equipment, leasing enables you to respond quickly to new opportunities with minimal documentation. Credit decisions are usually made on the same day.

DETERMINING MONTHLY PAYMENTS

Monthly payments have many factors that are considered when determining the dollar amount. These include the length of your chosen lease term, the type of equipment being financed, and your personal credit. Your individual payments will be based on credit and equipment approval, including any necessary sign repair services. Actual down payment and resulting monthly payments will vary. Check with your sales rep for exact monthly payments.

TAX BENEFITS

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 business income. Additionally, because lease payments are treated as expenses on a company's income statement, equipment does not have to be depreciated over five to seven years.

IMPROVES CASH FLOW

Lease payments are historically lower than loan payments, thus conserving cash for other uses. By leasing equipment, you know the amount and number of lease payments over the life of the leasing period, allowing you to accurately forecast cash requirements for your equipment.

MANAGE OBSOLESCENCE

A lease allows equipment to be returned to the lessor at the end of the lease term, enabling you to upgrade equipment without managing disposal and other ownership burdens. The risk of getting caught with obsolete equipment is significantly lessened.

BALANCE SHEET MANAGEMENT

Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your balance sheet, making you more attractive to traditional lenders when you need them.

LEASING IS SMART

According to industry research, eight out of ten companies lease some or all of their equipment. Why do they lease? Because the flexibility provided by leasing allows them to maintain the most effective operation possible. Companies that lease tend to be the most entrepreneurial and competitive.