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end-user benefits of leasing
Companies choose a leasing option for many reasons. Here’s a list of the most popular reasons our customers opt to lease their technology purchases.
- The Convenience of One Monthly Payment
One payment covers equipment, license fee and, where applicable, maintenance.
- No Large Down Payment Required
Usually only the first and last payments are required to start a lease.
- Conserves Capital and Overcomes
Modest cash outlay; working capital is free for other investments
- Immediate Expansion
Capital spending budget limitations are no obstacle when equipment needs to be added or replaced now
- Preserves Credit Lines
Unlike a loan, leasing usually does not affect bank lines-of-credit
- Fixed Payments
Fixed monthly payments avoid the uncertainty of variable (floating) interest rates typical of bank loans
- Helps Avoid Technological Obsolescence
At the end of the lease term, the lessee is not "stuck" with equipment that is no longer useful. Leasing provides many options concerning trade-ins, upgrades and add-ons
- Provides Tax Benefits
Leasing offers a variety of tax benefits, including, in many cases, fully deductible monthly payments
- Matches Benefits and Cost
By paying for the usage of equipment over the lease term, the customer matches the timing of cash outlays with the benefits of usage
- Utilizes Off-Balance-Sheet Financing
Certain lease agreements do not appear on the balance sheet and, therefore, do not adversely affect important financial ratios