Why Lease?
Eleven reasons commercial leasing makes sense.
Cash Flow: The #1 reason businesses fail is due to lack of liquidity. Maintaining ample cash for operations is a challenge for many businesses. Leasing allows you to conserve your cash for times when you need it most.
Convenience: Unlike banks, PFS will not burden companies with excessive reporting requirements. Simply complete application and return it to us with your equipment needs, and PFS will respond immediately.
Quicker Response: Timing is everything. Who has time to undergo the lengthy and burdensome credit approval process required by most banks? Upon receipt of application, PFS will respond immediately!
100% Financing: Conserve your line(s) of credit to support your accounts receivable, inventory and other working capital needs. Leasing can provide 100% financing, allowing you to acquire the equipment you need without a major cash outlay.
Tax Advantages: Leasing provides your company with substantial tax advantages you can’t achieve when you pay with cash or finance via a traditional bank loan. Don’t wait - maximize your tax benefit this year via the recently modified IRS Section 179 allowing businesses to write off up to $108,000 in leased equipment. Alternatively, write off 100% of each monthly lease payment as an operating expense throughout the entire term of the lease.
Off Balance Sheet Financing: Leasing is the perfect avenue to acquire new equipment without affecting the company’s balance sheet. If additional debt may jeopardize any existing bank financing relationships, an operating lease may be the right tool.
Fixed Payment: You will not need to worry about the rising cost of money. Payments are agreed to on the front end of a lease and remain fixed for the entire term.
Establish Credit: As your business grows, you will need to either trade up or acquire more equipment to meet your increased demand. By establishing your credit with PFS, it will be easier to acquire additional equipment in the future.
Flexible Payment Options: Leasing is a flexible financing tool. Unlike bank loans that only offer fixed, level payments, leasing can offer flexible payment options.
Conserve Bank Lines: If your company has been successful in establishing a borrowing relationship with a local bank, why use up the available funds on an equipment purchase that is easily financed via leasing? Again, conserve your bank borrowing availability to support your company’s ongoing cash flow needs.
Used Equipment: Often banks are only interested in financing new equipment purchases. While it may offer you an added opportunity, used equipment often presents added challenges to bank lenders who are typically less familiar with the useful life and resale values associated with used equipment. Regardless of whether or not you plan to buy used equipment from a dealer or private (third) party, PFS will likely have a variety of equipment leasing options from which you can choose.
