Leasing allows the asset to be paid for as it generates revenues while benefiting from tax benefits as well.
Typically there is No Money Down with equipment leasing. Unlike banks which often require 15%-20% down payment or balance maintenance, lease financing covers 100% of the equipment costs including taxes and soft costs such as shipping, labor and warranty. Most equipment leases only require 1st & last payments upfront to cover the first and last payment.
Leasing equipment does not hinder budget restrictions because lease payment are fixed unlike banks as their rates are based on Prime Rate. As a result, banks will offer variable rates as oppose to fixed rates. Leasing is always better for budgeting monthly payment throughou the life of the asset.
Often times equipment lease can be written off as a monthly expense at the pre-tax earnings instead of after tax profit, as what depreciating equipment would. Lease payments may be fully deductible. There are two types of leases, one is Capital Lease and the other is Operating Lease. Please consult your tax advisor for more information to best suite your financing needs.
Operating Lease, also known as FMV, is not considered long-term debt or liability on your balance sheet, so it doesn't appear on the balance sheet within your financial statements as debt, making you financially sound to prospective lender for future capital acquisitions.
In a tightining economy, cash has never been so important for liquidity reasons; therefore, cash should not be tied up in equipment purchases nor your line of credit or working capital in the bank. Compare a monthly payment to a large cash outlay. When borrowing gets tough cash is KING!
With equipment leasing, inclusion of your financials statements is generally unnecessary if your transaction amount is below $75k. With business loans and other type of financing, financial statements as well as your pesonal tax returns are almost always required regardless of how much you want to borrow.
Equipment Leasing with Liberty Capital has never been this easy. As always, we make sure that our clients' capital needs are met with atmost deligence and respect. Please call our Finance Specialist to get started 888-798-3976.
local line 619-358-9993 or fax completed application 866-780-8363
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