You may choose to lease for a number of reasons. A large company may choose to
lease for the tax incentives, where as a small company may choose to lease in
order to conserve working capital.
Below are letters that you should provide to your existing leasing company to
insure your lease does not extend past the lease ezpiration date.
Click here for Everbank USXL Letter of Intent
Conserve Working Capital- Purchasing equipment can require large cash outlay. Many companies lease to
conserve capital. Money is better spent for other day to day needs to keep the
Flexibility - Leases can be structured to meet the varied needs and financial goals of your
business. Leasing can offer deferred payments, step plans, seasonal payments,
no money down, etc.
Tax Benefits - Section 179 of the IRS code allows significant tax savings. Often, a monthly
lease payment can be deducted as an operating expense since it is treated as a
rental rather than a loan.
Additional Credit Lines - Lease approvals for equipment can establish an additional line of credit that
does not effect your bank lines. You can lease just about anything needed to run
Leasing Your Business Equipment Will Preserve Cash Flow - Profits generated from the use of the equipment are greater than the lease payments.
Current cash can be used for other needs of the business.
Easier Than Bank Loans - Lines of credit can be established in a matter of hours with minimal information
and no collateral. Leasing is convenient, quick, and easy. No long forms. 100%
Fixed Payments - Many financing transactions have floating interest rates. Lease financing
offers fixed payments, enabling you to budget and manage your dollars for a long