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Ten Advantages of Leasing
- Leasing does not tie up working capital.
- A lease is not indicated as a liability on a financial statement.
- Conserves credit lines for other use
you do not borrow
against bank lines when you use leasing as an option.
- Allows budgeted agencies to obtain equipment through their
operating expenses when capital funds are no longer available.
- Eliminates time consuming depreciation scheduling.
- Rapid depreciation write-off.
- Permits longer terms than lending institutions.
- With a Fair Market Value (FMV) lease, you may expense every
penny of every payment.
- Minimizes inflation risk by paying tomorrows cost with
todays dollars.
- Improves ratio; helps keep the balance sheet clean.
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