Improve Cash Flow – Unique payment schedules can be scheduled to match your cash flow, including a special “after harvest payment” program. 

No Additional Collateral Required – No additional collateral or security is required other than the leased asset.  This preserves existing conventional financing relationships.

Preserve Lines of Credit – A lease does not affect your company’s operating line of credit with your local lender and allows you to keep your borrowing capacity with other lenders available for day to day operating needs.  Leasing provides an alternative source of credit.

100% Financing – Leasing normally covers the complete equipment acquisition, including much of the soft costs such as installation, freight, etc.   Payment terms are available with as low down as one monthly lease payment.

Tax Benefits – Lease terms are usually shorter in length than the depreciable life of the equipment, which can result in a faster write-off of the asset.  Likewise, certain leases can be structured for you to take full advantage of depreciation.

Transfer of Assets – Leasing can be used to transfer ownership of an asset at the end of a lease to a designated heir, saving on estate taxes.

Potential Sales Tax Savings – Normally if state / local sales tax is charged, the tax is collected and paid over the term of the lease by simply adding it to each rental payment.  In some cases, if the leased equipment is sold or traded in to a dealer prior to maturity and the lease paid off, sales tax will not be charged on the balance owing.

Flexible Lease Terms– A lease can be tailored to your specific needs.  This includes consideration for timing of the cash flow, fiscal year end considerations, budgeting cycles and cyclical fluctuations.  Our goal is to match the lease payment to your cash flow.

Margin Management – Leasing matches equipment cost more closely with its use and many farmers make evaluations based on revenue or cost per unit.  Leasing makes unit comparisons easier than conventional financing.

Balance Sheet Ratios – In some cases, leasing may allow you to exclude leased assets and related obligations from your balance sheet.  Such moves can improve financial indicators, such as debt to asset ratio.  Keep in mind that you should consult with your accountant or financial advisor for all tax consequences of leasing.

Less Financial Information Required – Leasing normally requires less financial documentation than bank loans, meaning they require less preparation and are usually easier to secure.  For most equipment, earnings information is normally not required for transactions under $250,000.

Fixed Payments – Leasing is not subject to interest rate fluctuations.  You negotiate the payments up front and they stay fixed for the term of the lease. This allows for easier cash flow projections and budgeting for future years.

Various End of Term Lease Options – Leasing allows you several options at maturity.  You can purchase the equipment for a pre-determined fixed amount, renew the lease or return the equipment at maturity.  Purchase options are pre-set at the commencement of the lease and can range from as low as $1 to 50% of the original cost.   Remember that the higher the residual, the lower the rental payments over the term.

Conserve Working Capital – For liquidity purposes in a business, cash is extremely important.  A lease requires a nominal advance payment thus preserving your working capital.