Many area businesses
acquire equipment through the services of First South Leasing. In fact,
nationwide, 80% of all businesses lease equipment. That’s because savvy
business managers realize that the value of equipment is obtained from its use
rather than its ownership. Using capital to assure adequate inventory, business
expansion, personnel, etc., often proves to be more profitable than tying that
capital up in equipment. LEASING, rather than buying, has some real
- Leasing frees working capital for
- Leasing offers fixed payments, while
bank loans may be tied to a fluctuating interest rate.
100% of the equipment
cost is leased, including related installation and delivery charges, while
bank loans typically finance 75% – 80% of equipment costs.
lease payments are 100% tax deductible as a business expense, as opposed to
rigid depreciation schedules for purchased equipment.
Leasing provides a
hedge against inflation. By paying off a lease with tomorrow’s dollars,
businesses can replace leased equipment before obsolescence reduces
efficiency and profits.
- Leasing leaves bank credit lines open
for other uses.
- Leasing generally has a lower
after-tax cost than purchasing.
Leasing may be
available when other sources of credit are closed or too expensive.