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Home4Leasing
Education Center4Advantages
of Leasing
Advantages
of Leasing
Leasing provides
100% financing
Most leases simply require first and last payments paid in advance
and a small documentation fee. No security deposits or up-front money
is required. Enterprise Financial Solutions, Inc. (EFSI) pays your
vendor in full including installation, delivery and taxes unless state
law prohibits.
Leasing preserves credit lines
Credit lines with banks and other depository institutions are
precious and hard to establish. Conserve those lines for inventory, A/R
or other uses and emergencies. EFSI will take care of the financing for
your capital equipment so that your lines of credit remain free.
Leasing increases purchasing power
Your needs may be for a $50,000 machine but your available
cash/credit only allows for $30,000, hence you settle for a smaller
piece of machinery that only meets your needs half-way. EFSI can
increase your purchasing power by allowing you to finance the needed
equipment for the job. That way you get the equipment you need to meet
demand and promote growth.
Leasing balances usage and cost
Leasing makes sense when the equipment you use creates a return that
exceeds its cost. In other words, leasing allows you to set a fixed
monthly payment for the use of equipment that creates an anticipated
return exceeding that payment. That way you are certain that your
operation is profitable and the equipment serves its purpose.
Leasing provides fixed rate financing
Leasing is not subject to market fluctuations and interest rate
increases. You can negotiate the monthly payments up front and secure a
fixed rate for the life of the lease. This makes it much easier to
project cash flow and budgets for planning purposes.
Leasing conserves working capital
Keep your hard-earned cash on hand or invested. Enterprise Financial
Solutions, Inc. enables you to enjoy the working capital your company
receives since it covers all costs associated with capital equipment
purchases. This ability to grow and keep your cash ultimately puts you
ahead of your competition and ensures long-term profitability.
Leasing is convenient
Unlike dealing with bank loans and other alternative types of
financing, leasing is an easy and convenient process. Typically, all we
require is a one-page application for any request up to $50,000. Any
request above that amount will require some financial disclosure.
Leasing is tax-advantaged
When
structured properly, a lease agreement may allow you to receive tax
benefits. These benefits and their availability are subject to an
array of factors and we suggest you talk with your accountant about
these benefits. Similarly, any tax benefit received from the
ownership of the equipment by EFSI is passed on to the lessee through
competitive rates and lower fees.
Leasing is a hedge against inflation
Since your payments apply to the use of the equipment you do not pay
for ownership on equipment that consistently depreciates. Furthermore,
your cash savings can yield a return that fights inflationary pressures.
Leasing provides flexible payments
Lease payments can be structured to meet your needs. This adjustment
is possible by correcting the residual value of the equipment due at
lease end. By changing your end of lease balloon payment from $10,000
to $25,000 for example, you can lower your monthly payment
significantly.
Leasing provides options
Leasing provides flexible end of lease options. Equipment at the end
of the lease term can returned, extended or purchased.
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