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Why Leasing Could be Right for Your Business

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Managing a small business can be a challenge, but paying for the products you need to run your business shouldn't be. Today, eighty percent of U.S. Companies lease all or some of their equipment, particularly small companies. They lease on an ongoing basis, enjoying the flexibility and benefits that leasing affords them. Some of the benefits of leasing include:




•1.   Leasing Conserves Capital: Leasing allows customers to keep capital free for investment instead of tying it up in fixed assets. Profits from the investments can offset the cost of the lease.

•2.    Leasing Allows for More Financing: Leasing means a low down payment and no required compensating balances. A lease includes the cost of equipment and may include additional costs such as taxes, installation, service contracts and shipping.

•3.    Leasing Provides Tax Advantages: The less or is viewed as the owner of the equipment during the lease term; while the lessee, or customer, is allowed to claim the entire amount of the lease payment as an operating expense.

•4.    Leasing Enhances Budget Stability: Leasing guarantees a fixed payment amount for the length of the lease term, making it easier to forecast expenses. It also allows customers to obtain equipment for unplanned events since the operating budget (vs. capital budget) can accommodate a monthly payment.

•5.    Leasing Helps Avoid Technological Obsolescence: Leasing protects customers from being locked into owning equipment that may not meet future needs. It also provides the flexibility to upgrade easily to the newest releases, features, and functionality as soon as they become available.

•6.    Leasing Provides Flexibility: With the flexible end-of-Iease options, customers may purchase, refinance, upgrade, or return the equipment at the end of lease. Leasing means that customers can pay for the equipment as they enjoy the benefits of using it. There are two types of Leases offered by Toner Technologies. The chart below compares FMV to $1Buyout so that you can decide which is best for your company:

 

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