Capitaleasing.com

Definition of Leasing

A lease is a contractual agreement in which a leasing company (known as the lessor) offers a customer (known as the lessee) the right to utilize its equipment for a specific duration of time (lease term) with a specific monthly payment. The customer can choose to either return, purchase, or continue to lease the equipment after the agreement terminates, depending on how the lease was created.

Why Leasing Works For Nearly Every Type Of Business

It is a fact of the business world. Nearly every type of organization in the world uses some type of leased equipment. This includes sole proprietorships, partnerships, non-profit organizations, and government agencies.

Leasing Offers Excellent Financing Flexibility

Capitaleasing.com allows you to easily lease anything associated with your business including capital equipment, software and hardware.

What Are The Benefits Of Equipment Leasing?

The benefits of leasing your equipment are almost without limit. Leasing has become the preferred equipment purchase method for businesses. Over 35% of all business equipment is leased. Leasing offers great advantages that include reduced cash flow strain, better value, and greater control.

Why Do Some People Lease Instead Of Purchase?

There are many reasons. Here is a short list:
- Conventional bank loans typically involve more money initially than leasing and many times have restrictive covenants.
- Conventional debt financing often requires a down payment of 10-20%.
- Leasing usually requires only one or two payments initially, which are applied to payments in the future. Finance 100% of your costs today!

Significant Tax Savings

Monthly payments for operating leases and equipment are viewed as operating expenses. These expenses offer your company significant tax benefits. Always consult with your financial advisor to decide the most tax-beneficial lease for your company.

More Leasing Options

Some examples include:

Step-Up Leasing - This type of lease helps businesses who have determined that the financed equipment will generate more income in the future. It has lower beginning payments that increase over time.

Skip Leasing - The nature of this lease restricts payments to specific months of the year only so businesses can plan more efficiently for slow periods.

Deferred Payment Leasing - Your first payment is not due for a certain amount of time.

Master Leasing - Gives an easy way to add more equipment to an existing lease.

Lessen Obsolescence Risks

When your company owns equipment, new technology will render your equipment obsolete within a few years. The equipment may then no longer meet your company needs. Also, attempting to resell this equipment may be extremely difficult. Leasing equipment allows you to replace or upgrade with much less capital cost than purchasing.

Easy Cash Flow Forecasting

You can avoid any uncertainty about the future of your equipment because a lease obligation is essentially fixed. Planning and forecasting is easy when leasing is your main equipment acquisition vehicle.

WaterStates Financial’s “Capitaleasing Business Solutions” with our expertise and our partnerships with national lenders, can assist with all of your financing needs.