Why Should You Lease Your Equipment?

Payments are made from pre-tax earnings - Leasing offers possible tax advantages. Expense the cost of your equipment through tax deductible lease payments. 

Conservation of capital - When you lease equipment you only make monthly payments.  A lease agreement usually only requires a small deposit which means your cash can be preserved.

Preservation of credit lines - Leasing helps preserve valuable credit lines so you can use them for growth and emergencies.

Leasing is complete financing -  100% of the equipment cost can be financed.  In addition to equipment such items as freight, installation, training and some incidentals can be included.

Flexibility - Leasing offers the ability to upgrade the equipment during the term of the agreement.  You may wish to upgrade to the next model or version for a variety of reasons such as growth, new technology or increased efficiency. 

Protection of obsolescence - You never have to worry about equipment becoming outdated or out growing your equipment.  At lease end you may wish to have us dispose of the equipment or you may keep the equipment by exercising your appropriate buyout option. 

Hedge against inflation - When you purchase equipment you rely on depreciation to recover costs.  But this will be done with tomorrow's inflated, less valuable dollars.  Leasing will help decrease the real cost of your lease payments because you will be paying with tomorrow's eroded dollars.

Flex programs - Many flexible payment plans are available such as payment deferrals, step-up payments, seasonal payments, balloon payments -just to name a few.

Fixed payment - Lease payments are fixed no matter what happens in the economic marketplace unlike bank lines of credit with variable rates.

Simplifies your accounting- You record your lease payment as a simple line-item expense for financial reporting unlike completing tedious depreciation schedules.

If you decide that a more traditional type of financing arrangement is appropriate for your business, AM Financial can also accommodate this method as well---just ask and we will be happy to discuss your options.  

As always you should consult your tax advisor regarding these matters.


 ****ALSO CONSIDER THAT OVER 80% OF BUSINESSES LEASE SOME PORTION OF THE EQUIPMENT THEY ACQUIRE***