Here are some things to think about when considering
an equipment purchase via cash, a lease or a loan
Liquidity:
The #1 reason businesses fail is due to lack of
liquidity. Maintaining ample cash balances in your
checking account should be a top priority for a
company of any size. Leasing allows you to conserve
your cash for times when you need it most.
Convenience:
Beacon will not burden your company with excessive
reporting requirements. Simply complete our one-page
Business
Lease Application and return it to us with your
equipment quotation and you can expect our prompt
response.
Quick Turnaround:
If your company is like most, timing
is everything. Who has time to undergo a lengthy
and burdensome credit approval process? Upon receipt
of your credit application and equipment quotation,
you can expect a response
from Beacon within 24-48 hours.
100%
Financing: Conserve your line(s)
of credit to support your accounts receivable, inventory
and other working capital needs. Leasing can provide
100% financing, allowing you to acquire the equipment
you need without a major cash outlay.
Tax
Advantages:
Leasing provides your company with substantial tax
advantages you can’t achieve when you
pay with cash or finance via a traditional bank
loan. Don’t wait - maximize your tax benefit
this year via the recently modified IRS Section
179 allowing businesses to write off up to $250,000
in leased equipment. Alternatively, write off 100%
of each monthly lease payment as an operating expense
throughout the entire term of the lease.
Off Balance Sheet
Financing: Leasing is the perfect
tool to acquire new equipment without further leveraging
your company’s balance sheet. If additional
debt may jeopardize an existing bank borrowing covenant,
an operating
lease may be the perfect solution to your next
equipment acquisition.
Fixed
Payment: You will not need to
worry about the rising cost of money. Now is the
perfect time to lock in a low
monthly lease payment.
Start-Up
Financing: Often times, a bank may
not consider a business for financing if it has
less than two full years of operations. Typically,
the only lenders that will provide financing to
start-up businesses are those with a niche expertise
in a particular line of equipment or industry. Therefore,
if you are a new
business owner, leasing may be your best &
most competitive option for acquiring your new equipment!
Establish
Credit: As
your business grows, you will need to either trade
up or acquire more equipment to meet your increased
demand. By establishing your credit with Beacon,
it will be easier to acquire your next piece of
equipment.
Flexible
Payment Options: Leasing is an extremely
flexible financing tool. Unlike bank loans that
only offer fixed, level payments, leasing can offer
flexible
payment options. Ask a Beacon lease consultant
about our step-up,
deferral,
skip
and/or annual payment programs.
Avoid
Capital Budget Restrictions: Can
your company really afford to wait until next year’s
budgeting process to acquire the equipment you need
now? Beacon’s lease-to-own
program is the perfect tool to acquire equipment
today without being subject to this year’s
capital budget restrictions.
Conserve
Bank Lines: If your company has
been successful in establishing a borrowing relationship
with a local bank, why use up the available funds
on an equipment purchase that is easily financed
via leasing? Again, conserve your bank borrowing
availability to support your company’s ongoing
cash flow needs.
Used
Equipment: Often times banks are
only interested in financing new equipment purchases.
While it may offer you an added opportunity, used
equipment often presents added challenges to
bank lenders who are typically less familiar with
the useful life and resale values associated with
used equipment. Regardless of whether or not you
plan to buy your used equipment from
www.equip-used.com, a used equipment dealer
or private (third) party, Beacon will likely have
a variety of equipment leasing options from which
you can choose.
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