In today's fast-paced world of business, conserving cash is a key element to the success and growth of any business. Equipment leasing will help with advertising, growth, expansion of other locations, and employee growth.
By leasing equipment instead of purchasing it, working capital is saved and profitability is maintained, while your company can enjoy and benefit from top of the line equipment.
Other benefits include:
- Custom lease terms from 12-72 months
- 24 hour approvals
- Tax-deductible payments
- Keep bank lines in place
- Fixed monthly payment
Whether you should lease or buy is a critical question. The answer depends on the purpose of the equipment and its role in generating revenue. Putting it into perspective, an employee generates revenue for your company but you would not pay an employee's salary in one lump sum. Yet, when you purchase equipment, you are essentially doing the same thing.
Think about the rapid change in technology just during the past several years. Sinking large sums of cash into equipment every couple years is unproductive especially if the equipment becomes obsolete. The cash could be used for other opportunities. This general rule of thumb might help" "Buy what appreciates, lease what depreciates."
Leasing equipment is easy and flexible. With different payment structures and end of term options to choose from, Omega Capital Partners can structure a lease to fit your exact business needs. Our experienced and creative Account Executives will help you decide which program is right for you. Or you can decide for yourself by reviewing the types of leases listed below. They will help you determine what option you need and what works best for your company.
- Fair Market Value
This is a good option for businesses that expect the value of their equipment to decrease quickly, want to maintain low monthly payments, or will want to upgrade their equipment at the end of their lease. With the FMV lease, you have the option at the end of the lease to return the equipment, lease it for another year, or purchase it for the equipment's Fair Market Value. With this lease, you may get to write off 100% of the rental payments as an operating expense. Of course, you should consult your accountant about the tax treatment for your company.
- 10% Purchase Option
This plan is particularly attractive to customers who are uncertain about purchasing the equipment at the end of the lease but want the advantage of a fixed purchase price and a lower monthly payment. Like a fair market value lease, this plan also offers various end-of-lease options.
- $1.00 Purchase Option
For those who are certain they want to purchase the equipment at the end of the lease term, this is the recommended plan. After all lease payments have been made, the customer can simply purchase the equipment for $1.00. This plan may not be available in certain states.
- Lease financing give your company more purchasing power to acquire additional and/or higher-end equipment.
- Allows 100% financing. There is no down payment and the term can be matched with the useful life of the equipment.
- By leasing the equipment, you convert a large capital purchase into a lower up-front cash commitment with more affordable monthly payments-freeing up cash reserves for other needs.
- Your payments can be 100% tax deductible, meaning that payments come out of pre-tax income, not after-tax profits.
- Leasing provides your company with multiple options at the end of the lease and gives you greater flexibility in managing your business. At the end of the lease you can:
- Upgrade to the latest state-of-the-art equipment.
- Purchase the existing equipment.
- Add to the equipment lease at any time with an add-on schedule.
- Return the equipment at the lease expirations.
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