Consider Lease Financing Your Next Technology Acquisition
Since leasing remains the single most widely used method of external finance, you may want to consider lease financing your next acquisition. Leasing is an integral element in the total lifecycle solution. In addition, it affords businesses the ability to acquire the equipment needed to meet the competitive demands of today’s business environment.
Explore these additional reasons why leasing through CBTS Financial Services is a more viable option than expending your corporate capital.
Leasing impacts your bottom line because it ... >>
- Eliminates down payments through 100 percent financing
- Offers fixed rate, fixed payment financing
- Offers lower scheduled payments
- Drives periodic equipment evaluation
- Enables upgrades without refinancing
- Improves liquidity, leverage, solvency and profitability ratios
Leasing with CBTS Financial Services improves your business because ... >>
- Capital is retained, which can be utilized elsewhere in your business
- Credit is preserved: A lease is not a loan. Borrowing reduces available credit, whereas leasing is a new source of credit that will allow you to keep bank lines of credit open for future needs.
- Acquisitions not contemplated by a budget can be accomplished through leasing. To acquire computers through a lease, which is an operational expense rather than a capital outlay, is generally much easier to manage from a cash flow perspective.
- Obsolescence is eliminated: If you do not own a computer, you won’t keep it beyond its useful life. If bought, the depreciable life may be longer and you may use it past the point where better, more efficient computers would benefit your business.
- Tax benefits are realized. True lease payments are generally 100 percent tax deductible as an operational expense. If you borrow funds to acquire the equipment, only the interest and the depreciation allowed each year by the IRS can be deducted. Consult your tax counsel for specific recommendations.
- Normally, 100 percent financing is available and lease terms can be structured beyond normally available loan terms.