Equipment Leasing Advantages
Equipment leasing is basically a loan in which the lender buys and owns equipment and then "rents" it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value (or a fixed or predetermined amount); continue leasing, lease new equipment or return the equipment. Any business at any stage of development is a candidate for equipment leasing. For start-up businesses with no revenues, "small ticket" leases, those of $150,000 or less, are feasible on the personal credit of the founders or owners; if they are willing to make the monthly payments.
     •Leasing can also finance the soft costs often associated with equipment
       purchases, such as installation and training services.
     • Leasing provides 100% financing, conserving cash and preserving lines of        credit for working capital purposes.
     •Leasing provides a close matching of the lease term and payments to the
       revenue produced from employing the equipment.

Why Lease Equipment

For new and growing businesses equipment leasing doesn't tie up your cash into depreciating assets such as office equipment.  With leasing you have “NO DOWN PAYMENT” unlike a loan and you have fixed payments throughout the lease term which works well for budgeting.  Equipment leasing is also considered to be more easily attainable compared to a loan; which usually requires extensive documentation and often requires collateral.  Equipment leasing won't deplete your cash reserve or have a negative impact on your balance sheet.

Other Reasons to Lease
•Better uses for cash
      -Business people are lulled into thinking that paying cash is a good way
        to acquire equipment because doing so avoids finance charges and
        interest expense and results in lower total cash outlay. In fact, paying cash
        can be the most expensive way to solve the problem.
    
•Use not ownership
      - In deciding to pay for an equipment acquisition, it is important to
         remember that … it is the use and not the ownership of equipment that
         generates profits.
    
• Direct Tax Expensing
      - Lease payments are written off as made, eliminating the need for         
        depreciation schedules and allowing faster write off resulting in more
        cash freed up for other uses.
    
• 100% Plus Financing
      -Leasing can cover everything including software, installation, related
        leasehold improvements, training and even some supply items.
    
• Financial Reporting Advantages
      -We can structure leases to meet FASB requirements for “off balance
        sheet” accounting treatment.
    
• Protecting Bank Lines
      -Banks are great for short term needs & you should use them that way. An
        available line of credit is an extremely valuable tool to address unforeseen
        emergencies.
    
• Simple & Easy
      -1st National Leasing leases feature simplified documentation, easy one
        page applications, with no financial statements in most cases,
        accelerated approval times and more. All designed to get you the
        equipment you need without delay.