Lease, Cash, or Loan?

Choosing the right method of payment for your equipment purchase can be a time consuming and difficult task. However, much of this task can be broken down when you look at this a series of simple leasing benefits:

FACTOR	LEASE	CASH
Up-front Costs	Only First & Last required with most orders	Substantial Down Payment required with the order
Financed Amount	100% Financing Available	100% Cash Required
Sales Tax	Tax is not financed, and is assessed only on the lease payments over the duration of the lease term	Tax must be paid up front on the entire system cost
Terms	Typically 12 months to 5 years, with many buy-out options	100% Cash Required.  Accessing line of credit reduces availability of additional working capital
Financial Statement Impact / Tax benefits	Lease payments are shown as an expense item, reducing tax liability and improving financial ratios	A Capital purchase generally must be shown as an asset which must be amortized, therefore it can not be treated as an expense item.  This may cause tax consequences

We can provide some great financing packages, while providing some of the most competitive rates in the industry. Our financing department can provide you with outstanding customer service and see to it that communication is a top priority when providing the equipment financing for your business. The following are the most common terms and options that we can provide for you when acquiring the equipment for your business.

Lease Terms:

Ø  24, 36, 48, and 60 month

Purchase Options:

Ø  Fair Market Lease.  This is a standard lease with 3 options at the end of the term.

    Advantages:

• Ability to write off lease payments for tax purposes

• Lower monthly payments

• Defer the options until the end of the lease term

    End of Term Options:

• Purchase the equipment at the fair market value

• Relinquish the equipment and upgrade

• Continue the lease at the current rate

Ø  10% Put.  This option allows you to purchase the equipment at the end of the term at a lower price than the fair market value and still receive the tax benefits.

    Advantages:

• Ability to write off lease payments for tax purposes

• Purchase the equipment at 10% of the original equipment cost

Ø  $1 Buy Out.  This option allows you to purchase the equipment for one dollar at the end of the lease term.

    Advantages:

• Ability to write off lease payments for tax purposes

• Ability to purchase equipment for $1.00 at the end of the lease term

If you need any information, or wish to discuss your needs with one of our trained professionals, please call us today to set up an appointment.

Sales Office: (480) 380-7977
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