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EQUIPMENT LEASING
Any company that requires
specialized business equipment can take advantage of leasing to
acquire: Computer systems, Copiers, Vehicles, Medical Devices, Power
equipment, Manufacturing equipment, Agricultural equipment, And most
other equipment imaginable.
You can even lease back your existing
equipment to obtain immediate cash.
Reasons for leasing Conserves capital Conserves credit rating Off balance sheet accounting
Fast tax write off Eliminates obsolescence Can cost less than bank
financing Payment amount is flexible You choose your vendor and
equipment Promotes company growth Pay as you use instead of up front
Leasing conserves capital Because you
don’t commit your capital to purchase equipment, it is available for
other important business expenses. You have money to increase
inventory, expand sales, or hire needed personnel. The average return
on working capital in business is 18% after taxes. Leasing gives you
more working capital to support business transactions.
Leasing conserves credit A lease is not a bank loan.
Borrowing directly from a bank to purchase equipment reduces available
credit. In its own way, leasing is a new source of credit, but doesn’t
impact credit worthiness.
Off balance sheet accounting Because leased equipment is not recorded as an asset, it also is not
maintained as a liability. The leasing company pays the property taxes
and tracks the depreciation. This further preserves credit for other
purposes.
Fast tax write-off A true lease
can be written off 100% as an operational expense. Each rental payment
is completely deductible. If the equipment had been purchased under a
conditional sale or instalment basis, only the interest and
depreciation allowed each year by the Tax Office could be deducted.
Working with Us wwcb2b.com work with leasing
companies specializing in the non-banking market & banking market. If
traditional leasing arrangements aren’t working for you, wwcb2b.com
may be able to find a funding source that will. Depending on your
situation, the rates charged for the lease may be somewhat higher than
you expected. Remember, however, if you have a good business plan and
the equipment is standing between you and a profit, a slightly higher
payment may not be significant enough to impact your bottom line.
Furthermore, the leasing charges still may offset other expenses you
would have with a purchase.
Funding decisions are made quickly,
and once approved, funding is usually provided within two business
days.

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