Why You Should Consider Leasing For Your Business
Leasing Conserves Capital
Money tied up in capital equipment is money unavailable for growth...but a growing company needs all the capital it can generate.
Leasing frees that growth money for you. Instead of outright purchase or a sizeable down payment, you only make small lease payments, on a schedule that suits your needs.
Leasing also conserves capital by enabling you to treat your equipment as part of your operating expenses. These expenses are usually fully tax deductible. And because leasing is not borrowing, you don't need to maintain those compensating balances at your bank.
Leasing Is Flexible And Convenient
Whatever lines of credit your company now has will be unaffected by leasing. In effect, you are increasing the power of your capital.
Leasing Is An Inflation Hedge
We don't adjust subsequent lease payments on the basis of inflation. If inflation continues, the real cost of our lease will decrease, because the value of your payment dollar will be less.
Avoid Alternative Minimum Tax
Leasing (true leases) can be structured so that lease payments are totally expensed and the value of the equipment kept off the balance sheet. This is a preferable alternative to the new depreciation schedules as well as the potentially expensive impact of the new alternative minimum tax.
Leasing Avoids Obsolescence
ARC Financial Services, Inc. can help you in the forefront of technology. We can arrange a lease term short enough to provide you, on a continuous basis, with the latest equipment. At the end of each lease term, you can decide whether to keep leasing the present equipment, or lease something newer-- without any resale risk to you. Unless technological improvements in your field are unusually rapid, we can keep you permanently ahead of obsolescence.
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