Advantages of Leasing
- RETAINS CAPITAL TO GENERATE EARNINGS
- Full utilization of capital retained
- Free capital to take advantage of other opportunities
- Simplifies budgeting
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- PRESERVES CREDIT
- Meet equipment needs without depleting existing credit sources
- Off balance sheet financing - you have the equipment to use without having to capitalize
it
- Avoids loan-covenant restrictions
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- GENERATE PROFIT
- Put retained capital to profitable use
- current operations
- marketing
- research and development
- Lease payments are generally fully tax deductable
- Flexibility pay for equipment as it generates revenues, match term to payback, varied lease programs, varied payment plans
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Build up equity while you deduct lease payments
- OBSOLESCENCE PROTECTION
- By leasing, you keep your production facilities up to date and ahead of the competition