1. What is a lease?
  2. Why does it make good business sense to offer leasing?
  3. How does leasing benefit me?
  4. What makes leasing better than cash, a credit card or a loan?

1. What is a lease?

A contract in which one party conveys the use of an asset to another party for a specific period of time at a predetermined rate.

2. Why does it make good business sense to offer leasing?

  • Eight out of ten businesses lease equipment
  • Leasing is a total acquisition solution that shortens the sales cycle
  • Customers have come to expect equipment vendors to automatically offer their products on a sale and lease basis
  • When leasing is not offered on a sales proposal, customers assume that you do not have the ability to provide a financing solution, which may limit your future relations with those customers

3. How does leasing benefit me?

  • Pays for itself
  • Preserves credit lines and capital
  • Provides tax benefits
  • Offers flexibility
  • Provides obsolescence protection

4. What makes leasing better than cash, a credit card or a loan?
Cash Purchase
Loan
Credit Card
Lease
Payments
One large upfront payment
Varies with changes in the interest rate
Varies with changes in the interest rate
Fixed
Effect on Credit Lines
N/A
Reduces existing available bank credit line
Reduces existing available bank credit line
Leaves bank and credit card lines open for other expenses
Upgrading or Adding Additional Equipment
Easy - but you must pay for it with cash or credit card
Difficult
Easy - but you must pay for it with cash or a credit card
Easy - adding additional equipment is allowed