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Advantages of Payment Structure
Less impact on cash flow and preserves capital for other uses.
Financial payments can be structured to match your seasonal or cyclical cash flow.
Lines of credit and sources of capital aren't tied up in equipment. Instead, they're available for opportunities such as inventory, marketing or personnel.
Selecting a lease term that matches a project's duration is a good way to acquire the latest equipment without having to keep it when that project is complete. You can then enter another lease on new equipment for the next project.
In addition to financing 100% of the equipment, you can include "soft" costs such as sales tax, shipping, software, training, maintenance and installation into the lease.
Financing upgrade options can help protect against obsolescence.
Financing can help you maximize potential tax benefits.
Unlike the traditional methods of financing, operating lease obligations generally are not capitalized, which results in improved balance sheet ratios like ROA, ROE, etc.
At the end of the lease you may choose to purchase your equipment, upgrade it or continue to lease it, or, if you're done with the equipment, simply return it.
Attractive fixed payments over the term of the financing are often below current market.
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