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Did you know one of the key reasons companies finance is to enhance cash flow?

If your business can afford it, you may decide to purchase the equipment outright. Things to consider before your next business equipment purchase:

Disadvantages of Cash

  • Diminished Reserves: cash payment has an immediate impact on cash flow by diminishing cash reserves.
  • Impact on Credit: depletion of liquid assets may affect your credit worthiness.
  • Impact of Soft Costs: paying cash for soft costs such as installation, delivery and maintenance¬†erodes available cash.
  • Return on Time: cash should be used for income producing investments since you pay with today's dollars at today's value.

Advantages of Financing*

Why finance? Find out about the many benefits of equipment financing:

  • 100% Financing: leasing may cover 100% of the equipment cost with room to bundle soft costs including training, software and installation.
  • Possible Tax Savings: tax advantages often make financing less expensive than an outright purchase.
  • Cash Flow: customize a solution to fit your particular situation and pay for the equipment as you use it.
  • Use Inflation to Your Advantage: if you pay cash for equipment, you pay with today’s dollars at today’s value. When financing, you pay with next year’s inflated dollars, and the next, and the next.
  • Preserve Bank Credit Lines: leasing doesn’t affect your bank borrowing limits. You still have 100% of your credit available.
  • Accounting Benefits: monthly payments may be deductible as operating expenses rather than accounting for the equipment as an asset.

You select the equipment - we provide the financing. We offer sound guidance, flexible structuring and competitive financing. Call today to find out more.

* This information does not constitute tax advice. Consult with your tax advisor to determine how to use equipment financing to take advantage of expensing and depreciation tax savings or visit www.irs.gov.