Aircraft & Equipment Leasing
As opposed to a traditional loan, leasing is another financing option to consider.
Why Should I Lease Equipment Instead of Buy?
Leasing is flexible. Different companies have different
needs and different cash flow patterns. For example, start-up companies typically
are characterized by little cash and limited debt lines. Established companies usually
have other issues, such as the desire to keep balance sheet debt low to comply with
debt covenants. Therefore, your business conditions - cash flow, specific equipment
needs, and tax situation – will determine whether or not a lease is the best financing
choice for your company.
Leasing is practical. By leasing,
you can transfer some of the uncertainties and risks of equipment ownership to the
lessor, which allows you to concentrate on using that equipment as a productive
part of your business.
Leasing is cost effective. Equipment is costly and
some of the costs are unexpected. When you lease, your payments are usually less
than loan payments for an outright purchase and you can avoid costly down payments.
Additionally, your risk of having equipment that no longer meets your
needs is lower because you can upgrade or choose different equipment at the end
of your lease term.
Further, your equipment needs can change over time due to changes in your company,
such as diversification. Leasing allows you to stay on the cutting edge of technology.
Leasing has tax advantages. Rather than dealing with depreciation
schedules and Alternative Minimum Tax (AMT) issues, you, the lessee, simply make
the lease payment and deduct it as a business expense.
There are many different leasing options available. Please call us at 877-735-9467
to discuss which option is best for you.