Businesses of all sizes are turning to leasing to meet their equipment needs. Capital-conscious owners recognize that it is the use--not the ownership--of vehicles and equipment that produces profit.
Leasing is a practical and cost-effective way for you to acquire the trucks and trailers you need to stay competitive. Leasing gives you the use of a vehicle for a specific period of time on a fixed payment schedule. When you lease, you pay for the vehicle while it is being used and producing income. At the end of the lease period, your obligation ends.
The Operating and Financial Advantages of Leasing
Off-balance-sheet-financing. Purchasing large vehicles directly affects your balance sheet. A properly structured lease, although it must be footnoted on your financial statement, turns equipment into a direct expense instead of a capital liability.
Fixed Payments. Leasing protects against fluctuating interest rates.
Flexibility. Leasing enables you to have the most up-to-date vehicles available for the length of time you need them. When technology or design advances are made, or when your needs change, new vehicles can be obtained more easily than when obsolete vehicles must be sold.
Conservation of Capital. Purchasing means tying up capital down payments for fixed assets. By leasing your capital is freed to support operating expenses.
Improved Cash Flow for Seasonal Business. Payment can be coordinated with cash receipts. Payment options include:
Regular Monthly Payments
Accelerated Payments
Annual, semi-annual or quarterly payments
Seasonal payments; for example, six months on, six months off.
Best Use of Your Line of Credit. Leasing leaves your bank line open for short-term needs.
Convenience. A lease can be established to cover anticipated vehicles purchases over the course of an entire year.
