WHY FINANCING MAKES SENSE

Why Do 80% of American Corporations Finance Equipment? It's simple. Company owners and managers realize that the real value of equipment is in the use of that equipment, not necessarily in owning it. Best of all, by financing instead of buying outright or borrowing money, a company's cash and equity isn't tied up in equipment, but can be used in better ways to generate profits.

Equipment financing is a highly flexible option for acquiring capital equipment in which your company obtains possession and use of the needed equipment in exchange for a low down payment and affordable fixed monthly payments.  While a finance company retains legal ownership, your company avoids large initial capital expenditures and maintains the option to own the equipment for as little as $1.00 at the end of the selected financing period.

TAX OPPORTUNITIES

Finance payments may be considered pretax dollars and fully deductible operating expenses. Financing may eliminate the need for complicated depreciation schedules and could accelerate tax benefits. You also may avoid the Alternative Minimum Tax by paying for the equipment out of current, untaxed income instead of from pretax profits. The more profitable the company, the greater the advantage of financing.

FINANCIAL REPORTING

Financed equipment is its own collateral.

Off Balance Sheet Financing: A capital purchase must be listed as an asset and a corresponding liability. As years pass, depreciation and interest expenses have to be accounted for. Financed equipment is not required to be capitalized in financial statements. Financed equipment is footnoted, so a company's financial ratios and measurements improve. Financed equipment does not create a liability, so the company appears less leveraged.

Increased Return on Assets: Financing doesn't increase the purchaser's asset base, which allows a company to report a higher return on assets.

Improved Cash Forecasting: Financing payments are locked in for the term, eliminating uncertainties regarding the future cost of equipment.

Call us Toll Free at 866-620-6140 to speak with a friendly sales representative about our financing options!