Leasing

Leasing

The Benefits and Advantages to Lease Financing

100% Financing ~ Leasing provides total financing with no down payments. Hardware, software, cabling, and services can be financed, enabling you to walk out the door with the “total” solution.

 

Conserves Valuable Working Capital ~ Equipment purchased with cash depletes your working capital. Lease financing allows that working capital to be utilized more effectively for other purposes.

Preserves Bank Lines ~ Leasing provides an alternative source of financing. This allows you to acquire the equipment that you need without limiting your ability to finance inventories and address greater short term needs. The growth potential of your business will benefit from using leasing as an additional source of capital.

 

Ease of Budgeting and Inflation Protection ~ With leasing, you will have a fixed payment stream which matches the useful life of the leased equipment. The fixed repayment terms eliminate the effect of changing interest rates over the lease term and allow you to acquire the equipment at today’s prices and pay for it with tomorrow’s dollars.

 

Avoid Obsolescence ~ To paraphrase an old axiom, “Revenues are generated by the use, not the ownership of assets”. Leasing allows you to use the equipment that you need over the term in which that equipment will be of value to you. Leasing allows you all the benefits of ownership without the risk of becoming committed to obsolete technology.

 

Tax Advantages ~ Due to the accounting and tax treatment of leases, a lease may provide some tax timing benefits to your business. The savings involved will vary depending upon the type of equipment, lease terms and your marginal tax bracket. Generally, lease payments can be treated as operating expenses rather than capital expenditures, thereby providing a full and immediate deductibility. You should refer to your accountant for advice on the possible savings.

 

Self Financing ~ Lease payments are often made with the revenues generated or savings realized through the utilization of the leased equipment. As a result, working with MCAP Leasing enables you to achieve a “profit” on the new equipment from the first month of usage.

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