How To Lease - Ergonomic Manufacturing

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Why Lease equipment?
Consider the following benefits of leasing equipment:

Conserves capital/generates profits
Leasing is considered 100% financing, which is
almost impossible in any other form of equipment acquisition.� Practically any other
financing demands a 10% to 25% down payment, deposit, or compensating balance.
Leasing always avoids initial out-of-pocket costs.� You can quickly acquire use of
the equipment you want without major cash outlay.� You can then use the conserved
capital and the equipment to generate profits.
Avoid equity financing
Through leasing, you take advantage of fixed equipment costs today and operate on
tomorrow’s depreciated dollar.� Since capital outlay is held to a minimum, you avoid
equity dilution of your company, as often happens in equity financing.
Tax advantages
Lease payments are generally treated as fully deductible expenses.
Hedge against obsolescence
With today’s rapidly moving technology some equipment can become obsolete
quickly.� Leasing enables you to replace equipment before obsolescence sets in to
keep you competitive.
Deal with budget restrictions
Budget restrictions that prevent purchase of equipment may still permit a
workable lease arrangement.
Longer term – smaller payments
Typical lease terms are five to eight years – usually much less than the useful
life of the equipment.� Lease terms are generally longer than a normal loan period
from a borrowing source, resulting in lower monthly payments.
Great flexibility in lease plans
Lease payments can be arranged to match cash flow patterns, to match seasonal
business, to match earnings generated by the equipment.
Increases productivity & profits
You can use the equipment NOW to increase your productivity and your
profits by staying competitive in today’s fast moving economy, and that’s the name of the
game.

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