Fair Market Value Leases
Leasing offers a business some significant benefits in managing its balance sheet and cash reserves. Since the equipment is owned by the Lessor, leased equipment, in many cases, is not included on a business's balance sheet. This improves debt-to-equity ratios and the business's overall credit position. Leasing is a financing alternative for
businesses that are unable to take advantage of accelerated tax depreciation. Leasing can also provide a hedge against equipment obsolescence.
Before you decide to purchase your new telecommunications system, Access recommends you consider LEASING as one of your acquisition options. Even with the demise of the Investment Tax Credit, there are still plenty of good
reasons to lease. Here are ten of the best:
 | Use of Equipment - Leasing provides you with the use of the equipment for an agreed upon monthly payment that fits your financial needs. Therefore, you’re able to pay as you use. |
| Tax Benefits - With a lease you can deduct your monthly lease payment as an operating expense which helps you avoid the Alternative Minimum Tax (AMT) by reducing your AMT tax liability. |
| Flexibility - We can help you structure your lease payments to fit your budget. You can even add-on equipment during an existing lease to avoid large add-on costs.
|
| 100% Financing - You can cover all of your costs, including ‘soft’ costs such as sales tax, pre-paid maintenance agreements, shipping, software and installation labor in your lease. |
| Conservation of Capital - If your cash is not committed to equipment cost, you are free to spend it on other items such as inventory, advertising or personnel. By minimizing the initial capital outlay while avoiding the delay or
postponement of a needed system. |
| Easier Cash Flow Forecasting - Fixed monthly payments help you budget money into your future. |
| Fixed Payments - You can lock-in payments now and avoid the risk of inflation in the future.
|
| Preserves Existing Credit - Leasing does not commit your available ‘credit line’. Therefore, you have more capital at your disposal when you need it. |
| Longer Terms - Many banks and financial institutions only lend money for short term, such as twelve to thirty-six months. However, depending on the value of the lease, you can extend your term up to seventy-two months. |
| Purchase or Renewal Options - At the end of your lease, you may choose to purchase your equipment, upgrade to a new system, or continue to lease your existing equipment at substantial savings. |
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03/29/2007
