PAYING BY CASH OR CREDIT FOR YOUR COMMERCIAL EQUIPMENT?

Quick, hassle-free business financing (leasing, lease-to-own, rent-to-own, etc.) may be a better option.

ARE ALL BUSINESS DEBTS BAD?

A small business may want to avoid debt, paying with cash for purchases instead of leasing. Reducing business debt makes sense, but using cash from your business account to pay down your personal mortgage may be smarter, since business debt is tax-deductible.

CASH-FLOW IS CRITICAL

Maintaining a healthy cash balance at your bank can help your business survive competition and slow periods. Negative bank balances can also be costly and may potentially damage your good credit rating, whereas leasing your purchase can help your cash flow.

BUILD YOUR BUSINESS CREDIT HISTORY

Good business credit can also save you money because suppliers will check your credit history to determine if they should do business with you and under what terms. Will they give you 60 days interest-free to pay, or C.O.D.?

LEASING YOUR PURCHASE MAY PROVIDE TAX SAVINGS!

Leasing allows your business make more “after-tax” money. If paying with cash or credit, you must depreciate your equipment and write off the interest expense portion, whereas (in most cases) lease payments are 100% tax deductible.

SAVE MONEY (AND TIME)

If purchasing items from more than one supplier, you may need only to complete one credit application for ALL your business equipment purchases. Some leasing companies will finance many of your assets, including espresso and other equipment, furnishings, POS systems, signage, HVAC (ventilation) systems, delivery trucks and more.

DEALING WITH A BANK CARRIES SOME RISK

If your business defaults, having a business loan at same institution as your residential mortgage can potentially put your home at risk; and business bank loans are “demand loans”, so if your bank decides they no longer want you as their customer they can simply demand immediate repayment. Leasing companies offers flexible leases not demand loans, and they won’t be asking you to regularly provide financial statements to monitor your performance.

MAIN ADVANTAGES OF LEASE-TO-OWN:

  • FLEXIBLE TERMS from 6 months to 7 years and VERY COMPETITIVE RATES for established businesses
  • FIXED MONTHLY PAYMENTS makes budgeting simple
  • POTENTIAL TAX BENEFITS with off balance sheet financing (leasing)
  • LOGICAL MATCHING OF EXPENSES TO REVENUES – why pay “cash” for the equipment (in full) before it only gradually begins earning revenue?

BASIC/MINIMUM TERMS: credit-based application; typically first + last payment up front; 10% buyout at end of lease

MAIN ADVANTAGES TO RENT-TO-OWN:

Rent-Try-Buy is a 12-month rental agreement which gives you 5 flexible options:

  • UPGRADE EQUIPMENT at any time and grow with your evolving needs
  • PURCHASE EQUIPMENT at any time and get a 60% rental rebate

At the end of your 12-month agreement, you can:

  • CONTINUE RENTING and the purchase price will continue to drop
  • RETURN THE EQUIPMENT with no further obligation. * Your get out of jail free card!
  • REDUCE RENTAL PAYMENTS BY 30% and own your equipment in 36 months with the Easy Own option.

BASIC/MINIMUM TERMS: non-credit-based application; one-time fee of $200; first 6 payments up front