Benefits of Leasing
In today's competitive markets more than 85% of capital equipment and software are financed through loans or leases. Investments in equipment are primary to business operations and directly impact the commercial economy. Equipment finance and leasing has been proven as valuable solution for expansion and growth for the following reasons:
No Down Payment Required
Most banks require a down payment on a loan, so financing or leasing your equipment purchase is well suited to any budget. Cedra Capital's no down payment requirements and 100% plus financing covers out-of-pocket expenses such as freight, installation, training, project costs, maintenance, and taxes which allows for more financial control.
Flexible Repayment Structures
Matching your payments to your cash flow or budget requirements provides a flexible repayment schedule. Cedra Capital can tailor your plan with no payments for up to six months, seasonal payments, PUTs, TRACs, or other alternatives to match your budget needs to the term of the lease.
Tax Advantages
The great advantage to leasing or financing equipment by using Section 179 Deduction is the fact that you can deduct the full amount of the equipment, without paying the full amount in a calendar year. The amount you save in taxes can actually exceed the payments, making it a very bottom-line friendly deduction. In some cases, lease payments can be a fully tax-deductible operation expense (clients are advised to seek professional tax opinion about their company's benefits)
Preserve Bank Lines & Working Capital
Equipment financing or leasing allows your company to utilize existing credit lines and working capital for essential business purposes. Because making capital expenditures in equipment often poses financial risks for all-size companies, equipment finance or leasing can reduce your exposure to such risks and provide your company the financial flexibility, cash position, and liquidity potential for growth. This allows for increased efficiency, added cost savings, and additional investment capital for the operation of your business in areas such as inventory, R & D, Marketing programs, and Personnel.
Avoiding Bank Restrictions
Equipment finance or leasing does not include blanket liens, restrictive covenants, or reporting provisions that some traditional lending outfits require. This provides your company the financial flexibility to succeed and the diversification in relationships with lending sources to build a stronger credit profile and history.
Equipment Is Always Current
Your company is protected from equipment obsolescence by providing you with the ability to stay current with the latest technology and equipment in the market. You can upgrade your equipment without adding any financial obligation or stress to your company.
The "Green Effect"
"Leasing allows the technologist to replace power-hungry equipment with less costly-to-power systems. Replacing the equipment can reduce the power consumption by as much as 25%", according to EPA Report to Congress on Server and Data Center Energy Efficiency, released in August 2007.
Equipment Financing And Equipment Leasing for all Businesses
