Benefits of Equipment Leasing

Ownership of equipment alone will NOT produce revenue. It is the USE of the equipment, which is productive. When viewed from this perspective, leasing is frequently less expensive.

Additional benefits include:

CONSERVATION OF CAPITAL:     Cash remains untouched and available for other profitable purposes.

	TAX SAVINGS AND IMPROVED CASH FLOW:     The full cost of leasing can often be treated as an expense deduction for income tax       purposes and may result in a larger tax deduction than if you were claiming a depreciation     expense. This can mean substantial tax savings and improved cash flow.
	BETTER TERMS:     Lease payments usually can be extended at fixed rates over a longer period of time than     conventional bank financing…and without large down payments.
	SIMPLIFIED RECORDKEEPING:     One monthly rental covers the entire cost of the equipment.
	EASIER ALLOCATION OF COST:     Costs of individual equipment or systems can be better analyzed, controlled and reduced     because of direct allocation. No hidden costs.
	LEAVES BANK LINES UNTOUCHED:     Normally, a lender will not reduce a line of credit when equipment is leased. However,     when the equipment is financed, it consumes available credit.
	CLEANER BALANCE SHEET:     Lease payments may be entered as footnote items on a balance sheet and may not     increase your liabilities as a loan does. This is important to obtain additional credit.
	HELPS OVERCOME BUDGET LIMITS:     Since a lease is generally treated as an expense rather than as a capital expenditure,     room can often be created for monthly rentals.
	MORE LIBERAL CREDIT CRITERIA:     In many cases, US COMMERCE can complete a lease transaction when conventional     bank or other finance may not be possible.
	MASTER LEASE LINES OF CREDIT:     Provides ongoing financing capabilities for multiple equipment acquisitions over an     extended period of time. This allows for simplified budgeting and planning when it is know     that equipment will be need throughout the fiscal year.
	CONVENIENCE:     Convenience is a surprisingly important part of leasing’s appeal - both from the equipment     vendor and end user standpoint.  What businessperson needs the additional hassle of     acquiring long term capital financing when US COMMERCE is ready, willing and able to     do it for them?