Lease Vs Purchase/Finance

Cash Flow Flexibility: Leasing may help your company”s cash flow in a number of ways.

1) Leasing can allow you to retain your borrowing power for such purposes as real estate purchases, working capital needs, or acquisitions.

2) Leasing provides 100% financing and NO large down payment.

3) Leasing Payments can be spread over a longer time period than a traditional term loan thus keeping payments low.

4) Leases may offer flexibility through trade-ins End of term options can allow you to purchase, return your equipment, or renew your lease.

LEASING FACTS

Approximately 80% of U.S. Companies lease some or all of their Equipment/Software. The U.S. Commerce Department forecasts that 33% ($185 Billion) of the $480 Billion worth of Equipment/Software acquired by businesses in 2002l be leased.

FAVORABLE FINANXIAL REPOTING: According to the Financial Accounting Standards Board, you generally can list your lease payments as an operating expense, rather than as a debt, on your financial statements. Of balance sheet financing may keep your liabilities and debt-to-equity ratio low, which can enhance your company’s attractiveness to lenders and investors. Measurements of Return on Investment (ROI) and Return on Assets (ROA) may also look better.

TAX BREAKS: Under certain criteria, leasing may lower your after-tax equipment costs. You can shorten the time period over which you deduct lease payments. * You can increase annual deductions by shortening your lease. Leasing can be beneficial if you acquire a large amount of new equipment/software late in the year. *

Please contact System Data Resource for additional information

Pembroke Pines Office: 954 478 4194

Port Saint Lucie Office: 772 626 9398