All businesses benefit from the attributes of having alternative funds available to improve their position in the market and to expand their capabilities with newly acquired capital equipment. From small entrepreneurs to Fortune 500 companies, businesses of all sizes benefit from the variety of leasing programs in the commercial market. It is estimated that 80% of all businesses in the United States currently have an active lease and one-third of all new equipment acquisitions are funded through leases and alternative funds.
The benefits of leasing include:
Low Upfront Cost & “Real” Cash Flow Savings:
The number one concern of all small businesses is their daily cash flow requirements. Leasing allows for less upfront cost and lower monthly payments and allows clients to conserve their cash.
Overcome Budget Limitations:
Leasing should be strongly considered whenever a business is faced with capital budget restrictions. Leasing programs’ low monthly payments can usually be authorized through the monthly operating budget, allowing businesses to acquire needed equipment now, rather than waiting for annual authorization of capital expenditures.
Preserve Bank Credit Lines:
Existing lines of credit and borrowing availability are left untapped and ready to use for operational and short-term financing needs.
Immediate Use of Equipment:
Savvy managers have determined that the use of essential equipment at a low monthly cost is what generates the most profits. Ownership of depreciating assets can cost a company dearly over time. Leasing programs match monthly cost to accelerated returns and allows the client to quickly maximize their outcomes.
