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The following is an outline of some of the universally accepted financial and accounting
benefits of leasing:
- PROVIDES OFF BALANCE SHEET FINANCING
- The leasing obligations of a business may not have
to be shown on your balance sheet because they are expensed on a
monthly basis. By not having to show these obligations on your balance
sheet, ratios by which financial institutions evaluate companies
for the extension of creadit are enhanced.
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- Makes your financial statements look better to a banker!
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- FREES WORKING CAPITAL
- Leasing conserves working capital by eliminating
the down payment for items that are purchased and financed. Cash
is not taken from the business to purchase them outright. Leasing
provides 100% of the funds to aquire the use of an asset. Your capital
is free for productive use.
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- Keeps more cash in the company!
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- PRESERVES CREDIT LINES
- The standard ratios that financial institutions
evaluate companies for extension of credit are enhanced, making
the preservation and acquisition of credit easier.
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- You can borrow more money to make your business grow!
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- IMPROVES CASH FLOW
- Lease payments are normally less than finance payments plus no down payment or security deposits are needed.
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- You get lower monthly payments!
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- CONVERTS FIXED ASSETS INTO CASH
- Leasing affords a company the opportunity to convert
fixed assets into cash. When a company changes from ownership to
leasing, the owned assets are sold for cash that goes
back into the business.
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- We buy your assets and you keep your cash!
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