Lease Vs. Bank!

The Equipment Leasing Experts -- Our 32nd Year!

 

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Leasing Vs. Bank & Cash Financing

Why pay in advance for business assets? 
Your clients don't pay you 5 years in advance, so why pay for the equipment that makes the products that you sell to those clients--5 years "in advance!?!"

Leasing matches equipment expenses...
To the revenue earned by that equipment!  

Avoid the Trap!
Too many businesses attempt to upgrade their systems and capabilities on an "as cash flow permits..." basis--which sounds great, but often results in the "piece meal" implementation of beneficial new assets.  Companies that take advantage of leasing can bring new equipment/processes on-line sooner and increase their productivity and profitability sooner--all matched to predictable monthly payments.

Lease Financing Vs. Bank Financing...

Lease Vs. Bank
Learn The Facts!
A Surprising Comparison!
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Leasing is much faster and easier that bank financing.  We can provide approvals in 1-2 hours.

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A true lease is 100% tax deductible.  Bank-financed equipment must be depreciated over a period of years and only the interest portion is deductible. See other Tax Advantages of Leasing

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Leasing Can Accelerate Your Write-Offs.  You can set the term of a true lease to a shorter period than the I.R.S. loan/cash purchase depreciation schedule permits--effectively writing your equipment off FASTER! See other Tax Advantages of Leasing

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No restrictive covenants on future borrowing.  Most banks attach broad restrictions on your ability to seek future financing without their express consent.

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No "cross collateralization."  Banks often require that you pledge other collateral (assets).  They do this by filing "blanket liens" that effectively secure all of your equipment and assets, not just the equipment you are acquiring (like a lease).  Your future financial flexibility may be severely compromised.

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Lower cash requirements.  Banks "typically" require 10-25% down payments while leases require only one or two payments in advance.  Sometimes, nothing down utilizing First Capital's deferred payment programs.

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Lease are 100% financing  and can include soft costs like installation and training, shipping, pre-paid service contracts etc. 

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No "compensating balance" requirements.  Most banks want all of your commercial business including checking and savings accounts with minimum balance requirements.  Leasing companies do not.

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True leases are ("off-balance sheet").  Because you don't own the equipment you needn't record the asset or the liability.  (This is important to many company's with bank lines that restrict debt and liquidity ratios.)

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No business plan required/No loan committee runaround.

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Lease Payments Are Fixed...Bank Rates Float.  Lease payments are easily budgeted expenses.

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Lease payments can be tailored to your cash flow patterns: with step-up, step-down, seasonally adjusted, skip payment and other payment stream options.  View all of our Lease Programs.

NOTE:  As always, consult your accounting professional on all tax issues

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