Checklist for Benefits of Asset Leasing

  • 100% financing allows you to conserve your capital.

  • Total lease rental is tax deductible.

  • Plant and equipment is paid from pre-tax earnings allowing you to increase your earnings from the business.

  • No security is required thus freeing collateral for other types of borrowing.

  • Lease finance is usually easier to obtain than other types.

  • Leasing charges are fixed as per the agreement.

  • Some leases have conditions providing for variations in rental and interest rates.

  • The amount of finance provided is fixed so it can be structured to suit you.

  • You are not committed to using the goods once the terms of the lease expire because you can buy or lease more assets at better rates.

  • You have greater buying power available for more critical areas of the business.

  • You have the option of purchase which can be exercised at a later date.

  • There are no restrictions on the company’s financial operations while loans will usually have this.

  • It usually spreads payments over a longer period than loans permit.

  • Provides certain protection against the risk of equipment obsolesce because you can get rid of the equipment or replace it at the end of the lease or replace the equipment during the lease.

  • The leasing firm can generally provide excellent technical advise when required.

  • In the event of bankruptcy claims of the lessor to the assets are more restricted than those of general creditors.

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