Eight out of 10 companies lease some or all of their equipment, according to an industry study. Why do they lease? Because the flexibility that leasing offers allows them to operate as effectively as possible. Companies that lease tend to be the most entrepreneurial and competitive. What is financial leasing and why should you consider leasing?
What Is Financial Leasing?
Financial leasing with lease to own is a form of financing that allows businesses or individuals to purchase goods and services without having to pay the full cost upfront. It involves a financial institution, such as a bank or leasing company, providing the necessary funds for the purchase. The customer then pays back the lender in installments over an agreed-upon period of time, plus interest. At the end of this period, they may have the option to buy out the loan at its current market value. This is known as “lease to own” and can be beneficial for those who are unable to commit to a large up-front payment or don't have access to traditional financing options.
Benefits of Financial Leasing
Tax Advantages
Financial leasing is a popular financing option for businesses and individuals alike. It provides a range of tax benefits that make it an attractive option for many. These tax benefits can include deductions on interest payments, deductions on depreciation, and the ability to defer capital gains taxes. Additionally, financial leasing can provide the opportunity to claim bonus depreciation on certain assets. All of these tax advantages can help businesses and individuals save money and increase their bottom line.
- Accelerated tax benefits are structured based on your needs.
- True Tax Lease - Monthly payments may be deductible during the term of the lease.
- Section 179 - 100% of the equipment may be deductible in the year it is purchased.
Flexible Payment Options
Lessors offer flexible terms so you can tailor your lease to meet your needs and requirements - cash flow, budget, transaction structure, economic fluctuations, etc. Example options include:- Customized terms for your individual needs.
- FMV leases, $1 buyout leases, 10% purchase option agreements.
- Seasonal payments.
- Reduced or step-up payments.
- No payments for 90 days.
- Start-up leases.
- Learning curve leases.
Preserve working capital
You'll find that leasing has a positive impact on your cash flow because you do not have to pay for equipment in one lump sum. A customized lease can save business owners cash so they can focus on growing their business. Leasing also allows you to more accurately predict your cash needs because you know the amount and number of lease payments you will owe during the lease term. In short:- Maximize your cash flow.
- Lower monthly payments mean more cash and open lines of credit for future growth.
- Know exactly what your monthly equipment expenses are.
SYIL Partners with Geneva Capital
SYIL is pleased to offer financial leasing options to its customers through Geneva Capital. Geneva Capital is a niche lender, meaning they only finance for specific markets, including machinery and related equipment. Not only is Geneva Capital able to tailor financing to meet the individual needs of our customers, but they also know the equipment you are looking to purchase. Geneva Capital is a direct lender, not a broker. This means that your lease remains with Geneva Capital from start to finish.
2023 Equipment Finance Promotion
SYIL and Geneva Capital currently offer a special financing promotion for the first quarter of 2023. You can easily start your application now!
Conclusion
Financial leasing is a great option for businesses who need to acquire heavy equipment but don’t have the necessary funds to purchase it outright. It allows you to use the equipment without having to make a huge upfront payment, which can be beneficial if you are running a business on a tight budget. With financial leasing, you can spread out the cost of the equipment over time while still enjoying its benefits.
SYIL's partnership with Geneva Capital offers you a financing solution that brings you closer to machining. It gives you easy and fast access to the funding you need. Most funding decisions are made within hours of application, and the application itself is easy to complete. Contact SYIL today for more info!
