 |
80% of U.S. companies—of all sizes—lease all or some of their equipment
|
Leasing first became a popular financing option for companies looking to protect themselves against obsolescence and take advantage of the tax benefits associated with rental-type lease contracts. In recent decades, leasing has evolved into a multifaceted product with many unique advantages. For this reason, more companies than ever are taking advantage of the numerous benefits that leasing has to offer. Leasing is no longer just for companies looking to finance high tech equipment over short terms. Leasing is utilized by companies of all sizes, in all industries, all over the world. High tech companies are still using leasing to remain relevant, startup businesses are leasing to keep their upfront costs low, and all types of businesses are taking advantage of the cash conservation and tax savings benefits when purchasing everything from office furniture to heavy equipment.
According to the U.S. Department of Commerce, 80% of all U.S. companies lease all or some of their equipment. Here's why.
- Cash Conservation: Leasing allows you to reserve your cash and other credit lines for their intended business purposes—inventory, marketing, R&D, etc., and for income producing activities. And, conserving cash allows you to account for the unexpected costs smart business owners have come to expect.
- Cost Effectiveness: Leasing pays for itself. Your equipment is either directly related to revenue production or a very important part of it. Match your monthly investment with your expected revenue and let your equipment pay for itself while it makes you money.
- Convenience: It's faster (approvals are usually secured the same day, and often times within hours or minutes), easier (most applicants will only be required to complete a single one-page application for up to $100K), and has less restrictions than traditional financing.
- Flexibility: Leasing offers a variety of options from various end-of-term options to special payment structures like seasonal and deferred payment plans.
- Tax Savings: Operating leases offer tax savings not available on other types of financing, and capital leases qualify for accelerated depreciation.
- 100% Financing: Banks often require 20%+ down, meaning they're really only lending you 80% of the equipment cost. Leasing requires little (one or two monthly payments in advance) to no down payment. Additionally, leasing allows for the financing of soft costs including delivery, installation, training, etc.
- Safety: There are no blanket UCC filings (only the equipment is held as collateral) or restrictive bank covenants. Leasing also helps protect against obsolescence by offering easy upgradeability.
- Unparalleled Service: You will be connected with an experienced Account Executive who is an expert in your industry. Their job is to understand your unique situation and provide you with the best solution. With Highland Financial, you are not just another number.
- Fewer Restrictions: Not only can Highland Financial approve more high risk credits, but we do so in even cautionary industries such as foodservice, automotive, fitness, home mortgage and construction. Additionally, we have fewer restrictions on equipment type with programs for soft collateral like software, as well as used equipment.
|
|
