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Leasing provides companies with a practical, effective way to finance
the acquisition of the business equipment they need to grow and expand.
Equipment lease financing gives you an option to buy at the end of the
term.
Improves Your Cash Flow
When you lease assets, your cash is
not tied up in a purchase. Your bank lines are untouched, and there's
little or no down payment. Working capital is free for investments that
will grow your business, produce income, and insure the equipment you
acquire earns profits.
Preserves Lines of Credit
Leases can be structured so the 'lease
debt' does not have to be shown as a direct liability on your financial
statements. This allows you to preserve your borrowing availability
with your bank and other creditors. It may also result in improved
debt-to-equity and earnings-to-fixed assets ratios thereby improving
how the lending community views your company in general.
Hedges Against Inflation
Your monthly payment remains the same
over the term of the lease or loan. Dollars paid later in the term
usually have less purchasing power than those paid at the beginning of
the term, so you pay for today's equipment needs with tomorrow's
lower-value dollars.
Saves on Taxes
As much as 100% of your payments may
be tax deductible depending on the type of lease you select. You may be
able to deduct your entire lease payment as a current operating expense
for both financial reporting and for income tax purposes. This can
reduce your overall tax liability and therefore reduce the 'real cost'
of acquiring equipment.
Consolidates Your Debt
Unlike bank loans, individual leases
can be consolidated into a master lease. This provides the advantage of
the lower rates for larger transactions while getting the flexibility
to acquire individual pieces of equipment based on your schedule.
Provides 100% Financing
Leasing eliminates the need for a down
payment by allowing 100% of the equipment cost to be financed. Even
"soft costs" such as training, customization, shipping,
installation, and maintenance agreements can be included in a typical
lease.
Simplifies Equipment Changes and
Upgrades
Hiring additional workforce? Expanding
your business? Additional equipment can be added to your existing
lease, usually with the same terms. The equity in your leased equipment
can be applied toward the lease of new equipment or you can upgrade
equipment and add peripherals as the need arises.
Eliminates Hidden Charges
With JTA Leasing, you have no
compensating balances, no closing costs, and no restrictive covenants
that banks use to increase customers' costs. What you see is what you
get.
Flexible Payment Programs
JTA Leasing offers a variety of
different lease types. Some can be tailored to meet the specific cash flow
requirements of your business. Let us help you select the length and
type of lease that best fits your needs.
Provides Flexible Terms
At the end of the lease, you have
several options: (1) return the equipment with no further obligation
(2) purchase it for a specific price as low as $1 (3) keep it and
extend the lease.
Includes Lender Stability
You can deal with a company that knows
you and actively supports you on a regular basis for all of your
assets. You don't continually have to educate different lenders on the
specifics of your company, saving you considerable time and money.
Has Low, Fixed Monthly Payments
Leasing provides long term fixed rates
and fixed payments and typically results in a lower monthly payment
than conventional financing. This simplifies budgeting and reduces
long-term risk.
Less "Red Tape"
Many bank, commercial loan, and credit
line agreements significantly restrict additional borrowing or
financing. In some instances, a borrower must obtain the permission of
an existing lender for additional borrowing, maintain a certain level
of compensating balances, or provide periodic financial information.
Leasing does not have these types of restrictions or provisions.
Lower Life Cycle Cost
A lease lets you realize considerable
savings compared to outright purchase or borrowing for the purchase.
You pay only for the use of the equipment. Leasing also helps reduce
the concerns and costs associated with equipment disposal.
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