Overhead Conveyor Systems, Design, Parts, Lubrication and Service
Equipment & System Leasing
Why Lease?
Leasing offers some great benefits as compared to capital purchases. Furthermore, the lease application is easy and quick - often processed in under 24-hours!
Loan : A loan requires the end user to invest a down payment in the equipment. The loan finances the remaining amount.
Lease : A lease requires no down payment and finances only the value of the equipment expected to be depleted during the lease term. The lessee usually has an option to buy the equipment for its remaining value at lease end.
Loan : A loan usually requires the borrower to pledge other assets for collateral.
Lease : The leased equipment itself is usually all that is needed to secure a lease transaction.
Loan : A loan usually requires two expenditures during the first payment period; a down payment at the beginning and a loan payment at the end.
Lease : A lease requires only a lease payment at the beginning of the first payment period which is usually much lower than the down payment.
Loan : The end user bears all the risk of equipment devaluation because of new technology.
Lease : The end user transfers all risk of obsolescence to the lessors as there is no obligations to own equipment at the end of the lease.
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Loan : Financial Accounting Standards require owned equipment to appear as an asset with a corresponding liability on the balance sheet.
Lease : Leased assets are expensed when the lease is an operating lease. Such assets do not appear on the balance sheet, which can improve financial ratios.
Loan : A larger portion of the financial obligation is paid in today's more expensive dollars.
Lease : More of the cash flow, especially the option to purchase the equipment, occurs later in the lease term when inflation makes dollars cheaper.
More Reasons to Consider Leasing!
- Additional source of credit without tapping into your bank line of credit
- Potential Tax Advantages
- Leasing Includes Cost of Acquisition and all "soft costs"
- End of Term Flexibility
- Transfers Ownership Risk to the leasing company
- Obsolescence is Obsolete. No worries about owning outdated equipment.
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