Leasing Defined
A lease is a contractual arrangement in which a leasing company (known as the lessor) gives a customer (know as the lessee) the right to use its equipment for a specified length of time (lease term) with a specified monthly payment. Depending how the lease is structured, the customer may either purchase, return, or continue to lease the equipment once this agreement expires.
Why Leasing Works For Almost Every Kind Of Business.
It's a fact of the business world. Almost every type of organization in the world currently uses some form of equipment leasing, including sole proprietorships, partnerships, government agencies and non-profit organizations. According to a recent survey, over 80% of US businesses lease at least one of their large equipment acquisitions and of those, nearly 95% say they would lease again.
Leasing Provides Excellent Financing Flexibility
With LeaseBanker by FCL you can easily lease anything associated with the operations of your business (including all types of capital equipment, hardware and software. What you may not know, is that you can also lease such "soft costs" as training, installation and consultation).
How LeaseBanker by FCL Works.
At LeaseBanker by FCL, we have optimized our systems to ensure that you can gain quick lease approval. Simply fill out a short online lease application. LeaseBanker will review your application and contact you the moment you are approved to begin the leasing process.
What are the advantages of Equipment Leasing?
Stated simply, the benefits of leasing your equipment are almost limitless. Leasing has become the preferred equipment acquisition method for US businesses. Currently, over 35% of all business equipment is leased. Leasing offers real advantages including better value, reduced cash flow strain and greater control.
What are some key reasons why people lease as opposed to purchasing?
The reasons are many. Here is a short list:
- Conventional bank loans usually require more money upfront than leasing and often have restrictive covenants.
- Conventional debt financing may require a 10-20% down payment.
- Leasing generally requires only one or two payments upfront, which are applied to your future payments.
Finance 100% of your costs today!
In most cases, the full amount of the equipment, as well as the service, shipping, installation costs and maintenance can be included in the lease. This spreads the cost out evenly over the term of the lease, freeing up cash flow for your business now, when you need it most.
Significant Tax Savings
Monthly payments on equipment and operating leases are typically viewed as operating expenses. These expenses offer significant tax benefits. You should always consult with your financial advisor to determine the most tax-beneficial lease for your company.
Fast Turnaround
With LeaseBanker by FCL, most applications receive bids within two business days. This means you can acquire equipment right away, without having to consider loans or other more time-consuming financing vehicles. As well, leasing enables you to completely tailor a solution that meets your company's requirements. The flexibility of leasing with LeaseBanker is unprecedented - the length and amount of your payments can be customized to fit your situation.
LeaseBanker by FCL Gives You More Leasing Options
Some examples include:
Step-Up Leasing - this form of lease enables you to benefit from low starting payments that increase over time. This way, you can use your equipment to generate revenue at low initial capital cost.
Skip Leasing - this leasing form restricts payments to certain months of the year only, so you can better plan for slow business periods.
Deferred Payment Leasing - gives you a significant grace period before your first payment is due.
Master Leasing - offers a more convenient way to add more equipment to your existing lease.
Lessen Obsolescence Risks
When your company owns your equipment you run the risk that new technology will render your equipment obsolete within a few years. This can mean the equipment may no longer meet your company needs. It can also mean that attempting to resell this equipment may be close to impossible. Leasing allows you to replace or upgrade equipment, with much less capital cost than purchasing.
Cash Flow Forecasting Made Easy
Because a lease obligation is essentially fixed, you can avoid any uncertainty about the future equipment of your equipment. Planning and forecasting is very easy when leasing is your main equipment acquisition vehicle.
Read on about Leasing types here. Or contact us here . FCL/LeaseFirst Inc.
5575 Poplar Ave. Suite 424
Memphis, Tennessee 38119
901-763-4080
(866) 340-7376
Fax 901-761-5862
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