Leasing Solutions For Today's Challenges

Cash Constraints, Inflation, Seasonal Cash Flows, Hidden Costs, Taxes & More

Leasing has become so widely accepted that eight out of ten U.S. companies use it as their preferred method of financing.  Companies that use leasing range from the Fortune 500 to family-owned businesses.

At LRI, we tailor our financing solutions to include:

  • Application only up to $500,000
  • 100% financing (including soft costs)
  • Flexible terms from 12 – 84 months
  • Step/Skip payments to aid seasonal business cash flow concerns
  • Broad credit allowances (including start-up and challenged credits)
  • Fixed monthly payments to hedge against inflation

Leasing is an alternative method of acquiring capital equipment that is needed to help a business grow and operate more efficiently. It requires a customer (Lessee) to make specific monthly payments over a fixed period of time (typically one to five years). Title for the equipment rests with the leasing company (Lessor) for the term of the lease. At the end of the term, the lessee may exercise a purchase option provision, and title of the equipment is transferred at that time. When it comes to acquiring the equipment you have decided to purchase, you are faced with a decision process:

  • Do I pay cash?
  • Do I go to my bank?
  • Do I lease the equipment?

Leasing offers a wide variety of benefits over paying cash or using a financing source, such as a bank. In addition to the many benefits financing with Leasing Resources, general leasing benefits include many of the following:

  • 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.

  • 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.

  • 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.

  • 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.

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

  • 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.

  • 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.

  • 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.

  • 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 budget.

  • Leasing offers many tax advantages. Your lease payments may be tax deductible as an operating expense so you pay for the use of the equipment out of current, untaxed income instead of already-taxed profits. Consult your CPA or accountant for details and eligibility.

  • Leasing provides customized lease terms. Leasing Resources, Inc. 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.

  • 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.

  • 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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