100% Financing of all costs
Installation and sales tax amortized over the term instead of upfront, thus, avoid periods of low cash that may require
preserving working capital.
Off Balance Sheet
Operating Lease accounting for the Lessee allows the expense to be taken in the Income Statement (as paid) but does not place the obligation or the asset on the Balance Sheet.
Irregular or seasonal rent streams are charged to expense “as paid” allowing the lessee to control when and how the expense is to be taken.
Risk of Obsolescence
Properly structured leases transfer the risk of obsolescence to the lessor. A lessor should be selected who is capable of establishing a residual value as close as possible to retail at the end of lease. This will help in lowering the lease payments.
Cashflow
Lease payments are tied to cashflow to avoid periods of low cash that may require additional borrowing creating additional interest expense.
Lack of Indentures or additional collateral
Usually leasing only involves the equipment leased and does not allow for any credit enhancements that are not cash equivalents,such as, security deposits and advanced rent.
Lease Flexibility
The Lessee may have continuing use for the equipment at lease termination so we offer several options, extended rentals, purchase options, trade-ups and return options.
