There are several advantages to leasing your equipment over paying cash. If you have any questions about how this could work for your company please contact one of our leasing specialists today at 913-381-7900.
|Leasing only has a slight impact on cash flow because you make small monthly payments over time.||Cash Flow||Purchasing the equipment has an immediate negative impact on credit because of the need to make one large payment upfront.|
|With a lease, you are only responsible for the equipment for just as long as you are using it and have possession of the equipment.||Responsibility||As an equipment owner, you are responsible for the entire life of the equipment.|
|In many leases, the burden of maintenance, interest, taxes and insurance is managed by the leasing company.||Extras||As the owner, you manage all maintenance costs, interest, taxes, and insurance.|
|You transfer the risk of obsolescence to the leasing company since there is no obligation to own the equipment at the end some leases.||Obsolescence||All the risk of obsolescence will be on the owner of the equipment and must be tracked by you.|
|You can structure a lease to allow for additional equipment to be added and automatic upgrades to new equipment and technology.||Upgrades||The owner must manage the sale of outdated equipment; this can slow down the upgrade process.|
|Leased assets can be expensed and would not appear on the balance sheet which would improve your financial ratios.||Balance Sheet||As the owner, you must manage asset liability on your books. Accounting standards require owned assets to appear as an asset with a corresponding liability on your balance sheet.|