Advantages of Leasing
Leasing offers companies the benefit of acquiring the additional funds that they need to finance capital expenditures. Similar to a long-term rental agreement, a lease is an agreement wherein the lender or the “lessor” lends the borrower or the “lessee” an agreed upon asset to be used for a fixed period of time in exchange for a pre-determined series of payments. Depending upon the terms of the agreement, at the end of the lease term, the lessee can either buy the asset for as little as $1.00, renew the lease and continue to use the equipment, return the equipment to the lessor with no further obligation, or upgrade to newer technology.
Statistics indicate that leasing accounts for almost 30% of all capital expenditures in the United States with approximately 80% of all companies in the U.S. availing of some form or the other of leasing to fund their capital expenditures.
Equipment Leasing
vs Bank Financing
Flexible Capital
One of the biggest benefits of leasing is that a lease can be customized to meet the specific requirements of the customer with low fixed payments throughout the life of the lease term.
Lessees run the gamut from middle market companies to giant, multinational conglomerates. The industries that benefit from the flexibility leasing offers are just as diverse and can range from group medical practices, transportation and mining to telecommunications and diversified manufacturing. The types of equipment being leased are equally diverse.
Leasing is 100% financed including soft cost through various structuring techniques, leasing helps increase your existing capital tremendously. Secured long term rates and various cash flow benefits provide your company with much needed liquidity, which helps you get the competitive edge over other similar industries. With such tremendous potential benefits, it is vital to consider leasing as an integral element of your capital structure.
Advantages of Leasing
Leasing offers companies the benefit of acquiring the additional funds that they need to finance capital expenditures. Similar to a long-term rental agreement, a lease is an agreement wherein the lender or the “lessor” lends the borrower or the “lessee” an agreed upon asset to be used for a fixed period of time in exchange for a pre-determined series of payments. Depending upon the terms of the agreement, at the end of the lease term, the lessee can either buy the asset for as little as $1.00, renew the lease and continue to use the equipment, return the equipment to the lessor with no further obligation, or upgrade to newer technology.
Statistics indicate that leasing accounts for almost 30% of all capital expenditures in the United States with approximately 80% of all companies in the U.S. availing of some form or the other of leasing to fund their capital expenditures.
Equipment Leasing
vs Bank Financing
Flexible Capital
One of the biggest benefits of leasing is that a lease can be customized to meet the specific requirements of the customer with low fixed payments throughout the life of the lease term.
Lessees run the gamut from middle market companies to giant, multinational conglomerates. The industries that benefit from the flexibility leasing offers are just as diverse and can range from group medical practices, transportation and mining to telecommunications and diversified manufacturing. The types of equipment being leased are equally diverse.
Leasing is 100% financed including soft cost through various structuring techniques, leasing helps increase your existing capital tremendously. Secured long term rates and various cash flow benefits provide your company with much needed liquidity, which helps you get the competitive edge over other similar industries. With such tremendous potential benefits, it is vital to consider leasing as an integral element of your capital structure.