Burwood Business

Machines

 Advantages to Leasing Equipment

Tax Benefits-True lease payments are generally tax deductible as an operational expense

(If your company borrows funds to acquire the equipment, only the interest and the depreciation
allowed each year by the IRS can be deducted. Consult your tax counsel for specific recommendations)

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Capital may be retained which can be utilized elsewhere in your business

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Conservation of credit - A lease is NOT a loan

(Borrowing reduces available credit; leasing is a new source of credit that will allow you to keep 

lines of credit open for future needs)

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 Fixed rate financing

(Once a lease is closed and equipment is received, the payment is fixed and the risk

of fluctuations in interest rates is eliminated)

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Acquisitions not contemplated by a budget can be accomplished through leasing

(Acquiring equipment through a lease, which is an operational expense rather than 

a capital outlay, is generally much easier to accomplish than a budgetary approval)

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Balance sheet effect

(If equipment is purchased and money borrowed, liabilities are increased)

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 Eliminate obsolescence

(If your company does not own the equipment, it will not keep it beyond its useful life)

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 100% financing is normally available and lease terms can be structured

beyond typical bank loans

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