When the reserves in the capital budget do not support buying an asset with cash, lease payments from the operating budget are an attractive alternative. Leasing helps businesses remove the pressures of cost from the decision-making process with the right capital allocation choices.

100% Financing

Leasing is an excellent choice for avoiding a large initial cash outlay. With leasing your initial cash outlay is generally limited to a deposit of one to three months of your minimum lease payment. This leaves you with more cash for other areas of your business. Lease payments are lower than loan payments because leasing involves fixed installments payable only for the period of time you contracted to use the equipment.

Off Balance Sheet Transactions

The classification of a lease - capital or operating - determines whether it appears on the balance sheet. If the lease is a capital lease, the lessee from an accounting standpoint is treated as owner of the leased property. Financial Accounting Standards require owned property to appear as an asset with a corresponding liability on the balance sheet. Leased assets are expensed when the lease is an operating lease. Such leases do not appear on the balance sheet, but rather show up as an operating expense on the income statement, which can improve financial ratios. Only the balance sheet footnotes disclose the existence of operating leases. Consult your financial adviser to determine the proper accounting treatment of any specific lease transaction.

36-84 Month Lease Terms to Match Your Needs

Leasing brings financial peace of mind because you’ll know at the outset exactly what your payments will be for the duration of your lease. Payments are determined at a fixed amount, payable monthly, quarterly, semi-annually or annually. Once established, they remain at that amount, no matter what.

Flexible Payment Plans

Flexible payment options include scheduling payments at different intervals, on a step-up or step-down basis, matched with cash flow from earnings generated by the leased property, or around swap leases. Lease payments can be structured around the use of the leased property, changes in revenue streams and the lessee’s accounting needs.

Multiple End and Term Options Allowing Maximum Flexibility

A lease-financing package enables you to replace or upgrade property prior to the end of a lease on an orderly, predictable timetable that fits your operating and financing needs. You’re assured of having the most up-to-date property, which leads to higher operating efficiencies and added capacity for your operations. By leasing rather than buying capital assets, especially technology and communications equipment, you’ll reduce the possible risk of technological obsolescence. When the lease term expires, you can decide for yourself to keep the property you already have or create a replacement schedule to upgrade to the newest property the market has to offer.