What are the Benefits of Leasing?

Leasing offers numerous advantages over other financing methods:

Tax treatment. The IRS does not consider an operating lease or a true lease to be a purchase, but rather a tax-deductible overhead expense.  Therefore, you can deduct the lease payments from your corporate income.

Balance sheet management.  Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, thus making you more attractive to traditional lenders when you need them.

100% financing. With leasing, there is very little money down - perhaps only the first  and last month's payment is due at the time of the lease. Since a lease does not require a down payment, it is equivalent to 100% financing.  That means that you will have more money to invest in revenue-generating activities.

Immediate write-off of the dollars spent. Therefore, the equipment does not have to be depreciated over five to seven years.

Flexibility.  As your business grows and your needs change, you can add or upgrade at any point during the lease term through add-on or master leases.  If you anticipate growth, be sure to negotiate that option when you structure your lease program.  You also have the option to include installation, maintenance and other services, if needed.

Customized solutions.  A variety of leasing products is available, allowing you to tailor a program to fit your month-to-month or year-to-year cash flow needs.  You are able to customize a program to address your needs and requirements - cash flow, budget, transaction structure, cyclical fluctuations, etc.  Some leases allow you, for example, to miss one or more payment without penalty, an important feature for seasonal businesses.

Asset A lease provides the use of equipment for specific periods of time at fixed payments.  The lessor assumes and manages the risk of equipment ownership.

Email: bill@lutzleasing.com with questions                                                                                 Fax: 704-487-7928