Why Lease?
Lease all types of equipment
Leasing is one of the fastest growing ways of acquiring equipment in business
today. Recent surveys found that 80% of U.S. businesses, from Fortune 500 to
the local family business, lease some portion of their equipment. A growing
business often faces the dilemma of limited cash flow and the need to add
equipment. Leasing can put the equipment to work for you with real cash flow
advantages and without major capital investment. We can lease virtually any
type of equipment, including software and installation.
Low monthly payments
The monthly lease payment will usually be lower than the payment required by other methods of financing.
Smaller initial cash outlay Conventional bank loans usually require more money upfront than leasing and often have restrictive covenants. Conventional financing may require a 10-20% down payment or more.
Leasing generally requires only one or two payments upfront, which are applied to your future payments.
Conserve Your Cash
Cash is not used up for equipment. Instead, money is available for other important purposes such as marketing, working capital, or cash flow needs.
Tax Benefits
Unlike loan payments, lease payments may be fully tax-deductible as an operational expense. You should always consult with your financial advisor to determine the most tax-beneficial lease for your company.
100% Financing
In most cases, the full price of the equipment, as well as the service, shipping, installation costs and maintenance can be included in the lease. This spreads out the cost evenly over the term of the lease, thereby freeing up your money to use for other needs.
Fixed payments through the term of the lease
Unlike bank lines of credit that usually have variable rates, lease payments
are fixed no matter what happens in the market. By choosing leasing you won’t
be a victim of skyrocketing interest rates. Remember the 80’s when rates rose
from 9% to over 20% in one year? That can’t happen with leasing.
Avoid the risk of your equipment becoming obsolete
With ownership you run the risk that new technology will render your equipment obsolete within a few years, leaving you with equipment that no longer meets your needs and that is difficult to sell. Leasing allows you to regularly upgrade your equipment to the latest technology, eliminating the inefficiencies of owning outdated equipment.
Preserve Your Credit Lines
Your existing lines of credit and borrowing ability remain untouched and will be available to use for operational and other financing needs.
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