Monthly payments have many factors that are taken into consideration while determining the dollar amount. Among these are the length of your chosen lease term, type of equipment being financed, & personal credit. The calculator below will give you an idea of what range your payments could fall into.
*This calculation is based on the information you entered & is for illustrative purposes only. Your individual payments will be based upon credit & equipment approval. Actual down payment & resulting monthly payments will vary. Check with your sales rep for exact monthly payments.
LEASING IS FLEXIBLE
With leasing, you are able to customize a program to address your needs and requirements i.e., cash flow, budget, transaction structure, cyclical fluctuations, etc. For example, some leases allow you to miss one or more payments without a penalty, an important feature for seasonal businesses.
There is very little money down with leasing. Typically, the first and last month's payment are due at the time of lease signing. Since a lease does not require a down payment, it is equivalent to
LEASING IS FAST AND CONVENIENT
Leasing allows you to add equipment or upgrade equipment under similar terms. Leasing can also allow you to respond quickly to new opportunities with minimal documentation. Credit decisions are usually made same day.
The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your business income. Also, because lease payments are treated as expenses on a company's income statement, equipment does not have to be depreciated over five to seven years.
IMPROVES CASH FLOW
Lease payments are historically lower than loan payments, hence conserving cash for other uses. Also, by leasing equipment, you will know the amount and number of lease payments over the life of the leasing period, so that you can accurately forecast cash requirements for your equipment.
A lease allows equipment to be returned to the lessor at the end of the lease term. You can then upgrade equipment without having to manage disposal and other ownership burdens. The risk of getting caught with obsolete equipment is lessened.
BALANCE SHEET MANAGEMENT
Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your balance sheet, thus making you more attractive to traditional lenders when you
LEASING IS SMART
According to industry research, 8 out of 10 companies lease some or all of their equipment. Why do they lease? Because the flexibility provided by leasing allows them to have the most effective operation possible. Companies that lease tend to be the most entrepreneurial and competitive.