About Leasing

Why Lease? Why should you consider leasing?
Leasing conserves capital. Instead of tying up your money in a capital equipment purchase or utilizing bank loans which usually require compensating balances and/or loan covenants, a lease allows you to pay for your purchase photocopiers, printers and fax machines with low monthly lease payments. You retain your cash for investing in higher return opportunities. Leasing also circumvents capital budget restraints. By leasing office equipment rather than purchasing, you can utilize your capital to benefit areas which provide better returns. "Buy what appreciates, lease what depreciates."

Protect your line of Credit
With leasing as an alternate credit source, you are able to expand your available sources of credit without pledging your existing assets. Leasing allows you to keep your credit lines open and preserve your borrowing power for other profit generating opportunities.

Off-Balance Sheet Financing
Certain types of leases may help you to better manage your balance sheet and improve your overall financial picture.

Pay as you Profit
Pay for photocopiers while you use them; while they create returns for you.

Tax Benefits
Certain lease structures allow monthly payments to be treated as operating expenses and are usually tax deductible. Leasing allows you to defer taxes through 100% expensing the lease payment over the term of your choice. Discuss these advantages with your accountant.

Fixed Rate Financing
With a regular monthly payment, your fixed cost remains the same over the term of the lease.

Improves Product Affordability
Lease financing provides you with more purchasing power to acquire what you want when you need it.

Planned Equipment Replacement
You never need to lose money or time by keeping obsolete photocopiers, printers or fax equipment.

Leasing Options

Fair Market Value Lease (FMV) Benefits:

• Provides lowest monthly payments
• Lease payment can be deducted by lessee
• May qualify for off - balance sheet, operating lease treatment for reporting purposes
• Lessee has greater flexibility at the end of the lease

End of Term Options:

• Desire lowest possible payment
• Want expense treatment (off-balance sheet financing)
• Would like to return equipment at the end of the lease

$10.00 Buy-Out Lease Benefits:

• Depreciation expense may be able to be claimed by lessee
• Interest portion of the lease payment may be able to be deducted as an expense by the lessee

End of Term Options:

• Purchase equipment for $10.00

Why would you choose this type of lease?

• You would like to own equipment at the end of the lease.