WHY USE OUR LEASING PROGRAM

 

When a business chooses a finance leasing company, the cost of the leased equipment is spread over a multiple-year term keeping more working capital liquid to fund investments such as additional payroll or facility expansion.   As new opportunities arise, the need for additional small business equipment leasing soon follows. Whether it’s a small family enterprise or a multinational corporation, all companies share a common denominator—cash flow is the lifeblood of business.  Here’s why we recommend our business lease.

 

100% financing:

Since a lease often does not require a down payment, it is equivalent to 100% financing. Your office can conserve the capital that would have been used for a down payment and reinvest it in the business.

 

Immediate write-off of the dollars spent:  

With leasing, payments are treated as expenses on the income statement, so the technology solution does not have to be depreciated over an extended term.

 

Flexibility:  

As a business grows and needs change, the lessee may be able to add or upgrade technology at any point during the lease term.

 

Asset management:

A lease provides the use of the technology solution for specific periods of time at fixed payments. The leasing company assumes and manages the risk of technology ownership. At the end of the lease, if the business owner elects to return the technology, the leasing company is responsible for the disposition of the asset.

 

Upgraded technology:

Technology solutions that could depreciate quickly should be leased to limit a company's risk of getting caught with obsolete equipment. Plus, leases make it easier to upgrade or add technology solutions to meet ever-changing needs.

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Tax treatment:

The IRS does not consider certain leases to be a purchase, but rather a tax-deductible overhead expense. Therefore, medical practices can deduct the lease payments from income, thus reducing the net cost of the lease.

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Section 179 Tax Benefits

Equipment lease financing presents your business with some fantastic tax benefits. The IRS allows for lease payments to be fully deductible if your business uses the leased equipment. Office Development Group will give you an instant estimate of how much you can save when you finance equipment.

 

Tax benefits:

Leasing companies can pass the tax benefits of ownership on to the healthcare facility in the form of lower monthly payments.

 

Make your financial situation less taxing:

Equipment leasing can be less taxing, quite literally -- your lease or rental payments may be fully deductible from taxable income, depending on the type of lease you select. However, that isn't the only way that leasing can reduce the strain on your financial situation. For example, leasing can save you the time and difficulty of finding someone who will extend credit for you to purchase equipment. Making monthly payments under a lease also allows you to more easily budget funds and be prepared for unexpected expenses. And lease financing is separate from your revolving lines of credit or other primary lines with your bank, keeping that financing available for other needs as well.

 

Determine your true equipment needs:

Leasing allows you to mitigate all sorts of risks that may not be top of mind. A short-term lease, for example, can allow you to determine if equipment really fits your needs before you commit a lot of capital to a purchase or long-term deal.

 

Easier financing than loans:

With a lease, healthcare facilities can avoid requirements like compensating balances, large down payments, client list reviews and cash-flow projections, making the finance process faster and easier.

 

Finance services:

Training, support, and other services have become the most important components of a new equipment acquisition and technology. Yet these “soft costs” are some of the most overlooked during the decision-making phase. Often, everything involved in a technology purchase, from servers and telephone systems to software and copiers can be bundled into one predictable monthly lease payment, making it easy to budget for all costs associated with a technology acquisition

 

Speed:

Leasing can allow you to respond quickly to new opportunities with minimal documentation and red tape. Katana Development Group can approve applications within a few hours.

 

Improved cash forecasting:

When your company lease, they can accurately forecast the cash requirements for equipment since they know the amount and number of lease payments required, and with leases, there are no floating fees.

 

Flexible end of term options:

There are typically three flexible options at the end of a term. The lessee can return the equipment, purchase the equipment from the leasing company or extend the lease for an additional period of time.

 

Preserve your business credit: 

You are well aware of how important it is to keep your business credit line healthy… and open. Getting funding for business expansion, staffing and other operational expenses requires solid credit, and having an open credit line allows you to respond immediately in a time of need. Equipment leasing lets you keep your business credit line open and strengthen the cash flow of your business.