Leasing provides additional financial benefits beyond capital conservation. Some of the following points will apply to your business. Some will not. The point is, you should be aware of the hidden advantages that leasing offers. Read about the many additional benefits of leasing by clicking on the links below:

1. Leasing improves cash flow.
2. Leasing preserves other credit resources.
3. Leasing helps hedge against inflation.
4. Leasing keeps money in motion.
5. Leasing simplifies budgeting.
6. Leasing helps equipment earn its keep.
7. Leasing lets you choose the equipment.
8. Leasing increases equipment choices.
9. Leasing provides flexibility.
10. Leasing offers tax advantages.
11. Leasing offers Customized lease terms.
12. Leasing eliminates obsolescence.
13. Leasing takes care of hidden costs.

1) Leasing improves cash flow.
Leasing can provide 100% financing with no down payment. Lease payments are a fraction of the total purchase price and they are a pre-tax expense. No compensating balances are required and lease payments can be scheduled to coincide with income fluctuations.

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2) Leasing preserves other credit resources.
Leasing keeps your bank lines and other sources available to meet short-term requirements, such as inventory buildup and increased account receivables.

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3) Leasing helps hedge against inflation.
Each dollar you pay back in lease payments five years from now will probably have substantially less purchasing power than today’s dollar. These “small dollars” that result from inflation are much easier to part with.

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4) Leasing keeps money in motion.
By leasing, you can keep you company’s money working hard. For example, consider what $50,000 can do for you if it is actively invested in your inventory—rather than languishing in fixed equipment.

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5) Leasing simplifies budgeting.
Budgets can more readily accommodate monthly lease payments than large cash expenses for purchasing fixed assets.

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6) Leasing helps equipment earn its keep.
You expect your employees to earn their pay as they perform—why not your equipment? With leasing, you pay for your equipment as it benefits your business.

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7) Leasing lets you choose the equipment.
You can specify the equipment and the source—as if you were purchasing it directly. All normal manufacturers’ warranties are passed through to you.

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8) Leasing increases equipment choices.
Since the monthly lease payment is a small portion of the total cost of the equipment, leasing allows you the use of a greater amount of equipment for a given dollar allocation.

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9) Leasing provides flexibility.
Through leasing's extended terms, payment amounts can be substantially lower than they would be if the equipment was purchased with borrowed funds. Lease payments can be monthly or quarterly or annually, etc. Different payment amounts can be designed to occur within the same lease, including seasonal and step payments. In short, leasing provides you with far greater financial flexibility than any other form of equipment acquisition, enabling you to buy more equipment while staying within your corporate budget.

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10) Leasing offers tax advantages.
Normally your lease payments are fully tax deductible as an operating expense. As a result, you pay for the use of the equipment out of current, untaxed income instead of already-taxed profits. Naturally, you must abide by IRS guidelines. Your CPA or accountant can provide you with details.

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11) Leasing provides customized lease terms.
LRI can provide flexible lease payment structures based on unique circumstances and credit worthiness. At the end of the lease term, you may return the equipment to the leasing company, purchase it for the amount of your purchase option, usually $1.00 or 10%, or you may wish to renew the lease for an additional period of time

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12) Leasing eliminates obsolescence.
“The newest innovation” doesn’t stay new. Leasing gives you today’s best technology and then allows you to upgrade when the equipment has outlived its advantage. You can eliminate the hassle of selling equipment at a severely depreciated value.

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13) Leasing takes care of ‘hidden costs.’
Leasing gives you more than just the equipment. It also can cover the cost of delivery and installation. Your lease includes everything it takes to actually put the equipment to work for you.

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Read more about the specific tax benefits of leasing or learn what you can expect from LRI throughout the leasing process.

Special Note: LRI does not provide tax advice. Please consult your tax advisor to determine the impact on your business.