Equipment leasing firms offer advantages to your business.
- Equipment leasing is easier to obtain and more flexible than traditional loans
- It can provide you with certain unique tax or accounting benefits
Preservation of available credit – If structured properly the ‘debt’ does not have to be shown as a direct liability on your financial statements and consequently may allow you to preserve your borrowing availability with your bank and other creditors. This may also result in improved debt-to-equity and earnings-to-fixed assets ratios thereby improving how the lending community views your company in general.
Custom tailoring – There are a variety of payment structures, including:
- Deferred payments
- Seasonal payments
- Balloon payments
- Quarterly payments
- Step up and step down payments