Advantages and
Benefits of Leasing
Tax savings
Let ABEL demonstrate the various ways to increase income
and lower tax liabilities using leasing. Show payments on
qualifying leases are written off as direct operating expenses, reducing
current taxable income by using pre-tax earnings instead of after-tax
profits.
Conservation of capital and cash flow management
Leasing requires much less "up-front" cash than conventional
financing or a cash purchase. This allows your customer to
conserve working capital and manage cash flow more effectively.
100% financing & 100% cost coverage
Leasing eliminates the need for a down payment by allowing 100% of
the equipment cost to be financed. in addition, leasing can include all
"soft" costs such as maintenance, installation, training, and shipping
in the payment.
Low, fixed monthly payments
Leasing provides long term fixed rate and fixed payments.
Leasing also usually results in a lower monthly payment than
conventional financing...and with lower payments your customer can
afford higher quality equipment and more of it.
Credit diversification
Your customers' bank lines are not burdened. This gives them
leverage by leaving normal lines of bank credit undisturbed while
avoiding restrictive bank loan covenants.
Flexibility, convenience, and simplicity
Simply put, leasing can put your equipment to work for your customer
quickly and easily. A variety of lease terms, structures, and
purchase options are available, and credit approval is easier than you
ever imagined. Leasing is the least restrictive form of financing today.
Less "red tape"
Your customers can acquire more of your equipment when needed
without renegotiating existing bank loan covenants. In addition,
leasing avoids internal capital budget constraints because lease
payments are paid out of operating budget. This allows instant expansion
by avoiding costly delays.
Obsolescence protection
Leasing avoids the risk of owning equipment that is no longer
technologically useful or valuable. Leased equipment is more
easily replaced before obsolescence and physical deterioration take
place, so devaluation is avoided. |
