You pay only for the use of the asset, not for the ownership. This avoids tying up capital in assets. However, at the end of the term, you can own the asset.
Benefits of leasing with Equities Funding, LLC
You receive 100% financing, eliminating the need for a down payment, and as the lessee receive the tax benefits of ownership.
You receive longer-term, fixed-payments and lower payments, and as the lessee receive the tax benefits of ownership.
Your existing bank lines of credit are not impacted. Leasing also is a less restrictive form of financing.
You can improve ROE, ROA, and many other financial ratios by utilizing leasing instead of borrowing.
You can avoid certain tax limitations. Lease payments are expensed and do not contribute to Alternative Minimum Tax exposure or to mid-quarter depreciation penalties. Most leases are 100% tax deductible.
You avoid the risk of equipment that is no longer technologically useful or valuable. It can be upgraded to another piece by simply writing a new lease.
You can acquire needed equipment outside of the capital budget. Lease payments usually are paid out of the operating budget.