Better Uses for Cash

Don’t Out Smart Yourself: Don’t be lulled into thinking that paying cash is a good way to acquire your equipment. Let your cash work for you. Cash is King and can be the most expensive way to solve the problem.

LIQUIDITY IS CRITICAL you must have cash reserves. This can become an outright survival issue in this economy. Slow paying customers, slow sales or unexpected expenses put pressure on cash reserves.

KEEP YOUR CASH don’t invest in depreciating assets. Let the lease company do that for you. Invest in appreciating assets.

CONVENIENCE leasing is an easy way to acquire all your equipment by combining equipment, maintenance and training costs into one easy payment plan that meets your company’s needs.

100% FINANCING is available and lease terms can be structured beyond traditionally available loan terms. Banks typically limit loans to 36 months.

TAX BENEFITS a true lease can be written off 100% as an operating expense. Borrowing funds to acquire equipment only allows the interest portion of the loan and depreciation to be written off.

CONSERVATION OF CREDIT LINES a lease is not a loan. Borrowing reduces available credit. Leasing a new source of credit allows companies to keep valuable bank lines of credit open for future needs.

BALANCE SHEET if money is borrowed for equipment purchases, liabilities is increased. Asset to liability and debt to equity ratios will be impaired and liquidity is reduced.

ACQUISITIONS unforeseen at budget time can be easily achieved through leasing. Acquiring equipment through leasing normally alleviates the delay of budget committee approval.

ELIMINATE OBSOLESCENCE leasing equipment allows businesses to stay current and increase efficiency with modern, productive equipment.

LOW CASH DOWN PAYMENT typically one or two payments are required up front, with some vendor program no payments may be required. Banks typically require 20% down payment for instant equity position.