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The following is a summary of some of the universally accepted financial and accounting benefits of leasing (Please confer with your Accountant/CPA for requirements and eligibility): LEASING IS AN OFF BALANCE SHEET METHOD OF FINANCING The lease obligations of a business may not have to be detailed on your
balance sheet because these payments are expensed on a monthly basis. By
not having these obligations detailed on your balance sheet, various ratios
by which financial institutions evaluate companies for credit are enhanced.
LEASING FREES WORKING CAPITAL By eliminating the down payment for items that are purchased or financed,
Leasing conserves working capital. Typically, Leasing provides 100% of the
funds required to acquire a new asset. This frees your capital for more
productive uses.
LEASING PRESERVES CREDIT LINES The standard ratios that financial institutions use to evaluate companies
for additional credit are enhanced which makes the preservation and acquisition
of credit much easier.
IMPROVE CASH FLOW Lease payments are typically less than finance payments plus there are
typically no down payments or security deposits required.
CONVERT YOUR FIXED ASSETS INTO CASH Leasing gives a company the opportunity to convert fixed assets into cash.
By leasing assets, which a company currently owns, the owned assets are sold
for cash, which goes back into the company (not available for equipment leasing).
Leasing gives a company the opportunity
to convert fixed assets into cash. By leasing assets, which a company currently
owns, the owned assets are sold for cash, which goes back into the company.
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