F E AT U R E D A R T I C L E
Don’t Buy Business Equipment LEASE IT R
obert D. Parker, CEO of LEASEStation, recently commented, “Companies in need of equipment should conserve their capital for growth opportunities and business development and lease the equipment rather than use precious capital to acquire equipment”. This hidden secret that some companies have discovered is a valuable tool for businesses of all sizes especially start up and micro-cap companies. Robert further quoted “would you pay an employee the first year salary up front before they earned it?” Adding: “Why would you pay for equipment up front before it earned you money?” A great point and one that is very hard to argue with. Pay for the equipment monthly as it earns you money. It is a true eye opener that even a one day old business can get financed through LEASEStation. They are one of the most aggressive and competitive lessors in the USA. They will lease everything from a $1,500 auto lift for a repair shop to a $30 million IT solution for an enterprise size company. LEASEStation added reasons for a company to lease:
Acquire Equipment without Tying Up Your Capital
Take Advantage of a Tax Write-Off
Most financing requires a large down payment; however, a lease requires either no advance or only a minimal advance deposit. Therefore, you obtain the equipment instantly for immediate use with little cash outlay and low monthly payments.
A lease payment is made with pre-tax dollars, while a cash purchase is made with after-tax dollars. A lease payment can qualify as an expense, which will reduce taxable income and your tax burden.
Simplify Accounting Protect Your Lines of Credit A lease does not affect your bank borrowing power, allowing you to preserve those funds for other business opportunities or needs.
Since a lease payment can be an expense, it is listed on your income statement as such and is not shown as an asset or liability on the balance statement.
Lock-in Payment Maintain a Competitive Edge Leasing allows you to acquire the latest equipment at an affordable cost. You can then perform your job more quickly, efficiently and less expensively than the competition.
Eliminate Obsolescence Equipment you need today may not meet your needs in the future. Machinery and technology can quickly become out-of-date. A lease can be structured to match the life “usefulness” of the equipment.
Save on Additional Costs A lease not only covers the equipment’s cost, but can also include expenses, such as delivery and installation. www.stocknewsnow.com • www.snnwire.com • www.microcapreview.com
Unlike bank lines and adjustable rate loans, lease payments are fixed for the term of the lease and are not affected by market conditions. A lease cannot be called early, as a bank can do on a loan. A fixed payment also protects against inflation. In conclusion I would recommend considering leasing the equipment you need for your business. Hold onto your cash. I have included Robert Parker and his Business Development Managers contact information. n Robert D. Parker President/CEO www.leasestation.com 818-917-0153 Cell 888-436-1152 Fax Business Development Manager Daniel Schulz 818-261-0472 dschulz@leasestation.com Micro-Cap Review Magazine
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