Leasing Model Advisory

Are you expanding your operations? Do you think it is better to reduce Capex and work on Opex model?

Are you a manufacturer of Equipment? Do you think your business can grow faster if you offer leasing solutions to your customers?

Are you uncertain of the expansion plan? Want to have flexibility of spending less?

We have few custom structured methods to achieve business progress through the dynamic leasing solutions

1. Leasing Conserves Capital and Preserves working capital Lines

Leasing frees up cash for other income-producing investments and can be structured to allow faster tax deductions. A lease covers many "soft" costs and usually doesn't require a down payment. Your business can be making a profit immediately without touching your cash reserve, thus allowing you to use cash resources in other areas of your business. Leasing also keeps your working capital lines open to handle potential seasonal inventory requirements or emergencies. Banks are often reluctant to grant fixed-rate equipment loans, and they tend to require larger down payments and compensating balances.

2. Leasing Overcomes Tight Budget Limitations

Many companies are looking at the opex model due to the cash flow uncertainties and proven leasing models available through structured ways. Leasing enables companies to acquire equipment they might not have been able to afford any other way.

3. Leasing Allows 100% Financing

Leasing provides 100% financing on all the equipment and fit outs that you need in order to operate your business. Additional equipment can all be incorporated into the lease structure, reducing the initial cash outlay.

4. Leasing Provides a Hedge Against Inflation

Through leasing, you can use equipment at today's cost, but your monthly expense payment is made with tomorrow's inflated currency. This benefit is one of the clearest advantages of leasing

5. Leasing Eliminates Obsolescence

Advances in vehicle technology are being made very quickly. Leasing can be set up with replacement parameters based on your equipment needs in combination with a focus on reduced equipment lifecycle costs.

6. Leasing Offers a Fast Tax Deduction

A lease payment can be deducted as a business expense. The resulting deferral of tax liability results in lower costs on a present-value basis.

7. Leasing Provides the Benefit of the Balance Sheet Effect

Leasing provides "off balance sheet" financing. Leasing expenses are recorded as operating expenses, thus providing greater flexibility in terms of overall corporate finance planning. Equipment purchased with borrowed money increase liability and decrease liquidity. Similarly, cash purchases have the same effect â€” they increase fixed assets and decrease current assets, reducing the liquidity necessary for future growth.

8. Leasing Pays for Itself

Through leasing, you pay the monthly rentals out of savings or increased profits that are achieved through the use of the equipment. When you buy a vehicle, you are essentially paying for the use of it in advance, giving up the opportunity to use that cash for other purposes

9. Your Company Grows with Reduced Risk

Through incremental monthly payments, you can expand your business to meet future competitive threats. Leasing offer the flexibility needed to help you meet your business challenges