 |
 | |  |
 |
|
Should you lease or buy business equipment?
Leasing air purification equipment for the purpose of cleaning the indoor air, in industrial or commercial environments, makes sense in many cases.
Affordability
Leasing allows you the benefits of the most up-to-date technology without the burden of tying up your company's funds in one large investment. Instead, leasing allows you to make smaller payments over time. This frees up your company's money for other day-to-day expenses and emergencies. Leasing also is not considered a long term debt or liability and does not show on your credit report as debt, which makes you more attractive to possible lenders. We can include in your lease 100% of the purchase and taxes, as well as the delivery costs for equipment, where applicable.
Finance Leases (Lease to Own) - These typically allow the buyer to own the equipment at the end of the lease for just $1.00. Advantages include:
Low monthly payments.
Tax benefits: Many customers qualify for tax incentives under Section 179 of the IRS Tax Code plus depreciation and interest expense. Always check with your accountant to verify how these tax benefits will affect your company.
Leaves your bank line of credit available for other uses.
Low down payments -- Preserves your working capital because leasing requires no down payment and provides 100 percent financing, including ancillary costs, such as shipping and installation. Operating capital is saved for revenue-generating investments.
Equity investment - At the end of the lease, you own the equipment for $1.00 or the specified amount.
Longer terms with fixed rates - Bank loans typically use floating rates and these can be called in anytime during the loan. Leases offer fixed payments through the entire term and are not callable on demand or subject to annual renewals.
Simplified paperwork.
Flexibility. There are a variety of leasing products available, allowing the lessee to customize a program to address needs and requirements - cash flow, budget, transaction structure, and cyclical fluctuations.
Quick and Easy
With our simple application process, approval for your lease comes through quickly!
|
Leasing is the best way to pay... |
Lease |
Bank Loan |
Credit Card |
Cash Purchase |
|
Payments |
Fixed |
Vary with interest |
Vary with interest rate charges |
Single, at time of purchase |
|
Availability |
Availability unaffected |
Decreased |
Decreased credit availability |
Decreased cash availability |
|
Tax Implications |
Can be deductible as operating expense |
Generally a depreciation schedule (longer than useful life of technology) |
Generally a depreciation schedule (longer than useful life of technology) |
Generally a depreciation schedule (longer than useful life of technology) |
|
The Bottom Line |
Predictable cash flow: costs and usage compatible: potential tax benefits |
Large initial cash outlay: less available credit: obsolescence is a concern |
Less available credit: obsolescence is a concern |
Maximum initial capital outlay: obsolescence is a concern |
 1, 2, & 5 year Payment Plan options
Low minimum monthly payments
No down payment
No annual fees, and
No pre-payment penalties
We charge a small fee for processing your credit application and purchase. This fee is only charged if you are accepted, this covers all handling and paperwork fees. We usually have an answer the same day or next day and will process your order as soon as you are approved. Please note that some projects may take longer to process based on the project specifications.
A $250,000 write-off!
Section 179 Federal Income Tax Deduction: This deduction has been increased as part of the American Recovery and Reinvestment Act of 2009 and it allows a company to deduct the first $250,000 of equipment (Section 179 Property) purchased in 2009 from their taxable income. For companies purchasing (or leasing - with a $1.00 buy-out lease) up to $800,000 of equipment in 2009, this deduction is available in full. It then phases out on a dollar-for-dollar basis between $800,000 and $1,050,000 and it is not available for companies purchasing over $1,050,000 of equipment in 2009. However, companies can finance purchases over $800,000 with an operating lease and may still be able to claim this deduction.
50% Bonus Depreciation (expires December 2009)
The American Recovery and Reinvestment Act of 2009 also allows for a special 50% bonus depreciation for equipment placed in service for use in your trade or business for the production of income before January 1, 2010. This deduction allows an additional 50% first-year depreciation on the adjusted basis of qualified new equipment.
Standard Depreciation
Additionally, companies can take their standard depreciation deductions on the adjusted basis of qualified equipment. Machine tools and fabricating equipment are typically depreciated over 7 years.
FINANCING? Tax savings may exceed 1st years payments!
Always check with your accountant or financial advisor to verify tax or accounting issues and any tax benefits.
|
|
CONTROL:
|
 | FUMES
|
| SMOKE
|
| OIL MISTS
|
| DUSTS
|
| ODORS
|
|
 |
|
