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Why Lease Purchase?
Look at the many Leasing Advantages:

1.Preserve Working Capital / Cash Flow: Leasing conserves your working capital for use where it will produce the best return. Example : Inventory Business Development, Accounts Receivable, Real Estate.

2. Credit Lines : Leasing equipment leaves your existing credit lines available for short term needs. Example : Inventory Peaks, Trade Discounts, Accounts Receivable.

3. Tax Position : Lease payments are 100% deductible as a business expense, as opposed to only depreciation and interest deductions for financed equipment. A full write off over the lease term reduces your after tax cost substantially.

4. Budget Restrictions : Minimum cash outlay plus modest payments enable you to fit the lease into the tightest of budgets. When your spending schedule is severely limited, leasing makes it possible to obtain the equipment you need when you need it.

5. Balance Sheet Effect : The effect of leasing on financial ratios is very favorable. Examples : Shows a faster turnover of assets, better earning power for investment, less financial risk, and debt to equity ratio is less.

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More reasons why leasing makes sense:

LEASING EQUIPMENT provides PROFITS AND SAVINGS today with tomorrow's dollars.

Approximately 80% of U.S. Companies lease some, or all, of their equipment. The U.S. Commerce Department forecasts that 33% ( $153 Billion ) of the $476 Billion worth of equipment acquired by businesses this year will be leased.

Most equipment types, new or used, can be leased or financed. Leasing is available to businesses, professionals, municipalities, school districts. Suppliers of equipment use leasing to help their customers to obtain the equipment they need.

Favorable Financial Reporting: According to the Financial Accounting Board (FASB), you generally can list your lease payments as an operating expense, rather than as a debt. Off balance sheet financing may keep your liabilities and debt -to-equity ration low, which can enhance your company's attractiveness to lenders and investors. Measurements of Return on Investment (ROI) and Return on Assets (ROA) may also look better.

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