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Advantages of Leasing with Flex Lease Financial
Leasing works
for almost 7 out of 10 businesses who
apply with us,
because leasing makes economic sense.
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1.
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Leasing
may, result in Off-Balance Sheet (operating lease) financial reporting,
based on underlying assumptions. Leasing may enhance earnings per share and
return on assets results, important benefits to public corporations. |
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2.
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Leasing may provide a cost advantage over conventional financing by
transferring tax incentives (accelerated depreciation) associated with the
equipment ownership from the Lessor (the owner) to the Lessee (the user) in
the form of lower lease payments. |
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3.
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Leasing may minimize Alternative Minimum Tax and Mid-Quarter Convention
implications. Lease payments are not "preference items" for purposes of
determining AMT.
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4.
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Leasing provides 100% financing, conserving cash and preserving lines of
credit for working capital purposes. |
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5.
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Leasing provides a close matching of the lease term and payments to the
revenue produced from employing the equipment. |
Why pay in advance for your business assets?
Assets that...
- Return income (profits) over a period of years and,
that
- Depreciate in value over a period of years
What It Is:
Equipment
leasing is basically a loan in which the lender buys and owns equipment and then
"rents" it to a business at a flat monthly rate for a specified number of
months. At the end of the lease, the business may purchase the equipment for its
fair market value (or a fixed or predetermined amount), continue leasing, lease
new equipment or return it.
Appropriate for: Any business at any
stage of development. For start-up businesses with no revenues, "small ticket"
leases, those of $150,000 or less, are feasible on the personal credit of the
founders or owners.
Best Use: Financing equipment purchases.
Leasing can also finance the soft costs often associated with equipment
purchases, such as installation and training services.
Ease of Acquisition: Easy for leases of less
than $150,000. An application for a small-ticket lease is generally no more
complex than a credit card application.
Apply now with our
Fast Track Credit Application
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