How can leasing benefit my business?
By far, the best reason to utilize leasing is capital preservation. Quite often almost the entire amount of your electronic equipment purchase can be funded through leasing, which would leave your cash position basically unaffected.

Are there Tax advantages when leasing equipment?
When lease payments are properly structured, they are normally 100% tax deductible as a business expense. Please keep in mind that all business expenses, such as lease payments, are paid from pre-tax earnings and not after-tax profits! Of course, you should always consult your tax advisor before making a final determination.

Can I actually save money by leasing equipment?
Yes... when you lease equipment, your cash is retained for other business expenditures and your leased equipment is expended over a fixed period of time. This allows for equipment replacement before it becomes obsolete. Equipment devaluation is either avoided or minimized which results in a substantial cash savings.

How will leasing equipment affect my credit?
Leasing actually protects your line(s) of credit or your ability to borrow. Leasing preserves your funds for other business requirements or opportunities.

Will my lease payments increase with time?
All payments during the term of the lease will be for a fixed amount unless structured to meet specific criteria. Your payments are not affected by market conditions or interest rate fluctuations. Unlike a bank loan, a lease cannot be "called in" early. Of course the most obvious benefit of a fixed lease payment is that it protects against inflation.

What happens at the end of a lease?
You generally have two options at the end of any lease. One of the most common is to simply return the equipment to the Lessor with no further obligation on your part. The other option is to purchase the equipment; which might consist of a pre-negotiated or predetermined amount, percentage, or may be determined by fair market value of the equipment when the lease ends. An amount could be as low as $1.00 and percentages usually range from 10%-20%. A $1.00 buy out at the end of a lease is becoming one of the most popular methods of leasing today.

How will a lease affect my bookkeeping?
Lease payments are listed as expenses on your Profit and Loss statement. In turn, the lease payments are not shown as an asset or liability on your balance sheet. With this in mind, there is no change in the way your bookkeeping would be done.