1. Conserves Working Capital.
You need to preserve capital for income-producing investments. Equipment can generate income, but it takes valuable capital out of circulation. However, a lease permits retention of capital which can be utilized elsewhere. Additional earnings can be generated from retained capital making the overall cost of leasing even more attractive.

2. Obsolescence Hedge.
With the reduction and in some cases loss of Investment Tax Credits (ITC) the cost of new equipment has increased. New equipment is not only expensive, it may very well be obsolete in a few years. Leasing can help firms avoid the pitfalls of owning obsolete equipment. "Add-on" provisions or "trade-up" leases may be your company's answer to replacing equipment you either outgrow or that no longer does the job.

3. Alternative Source to Debt.
When you acquire equipment through leasing you preserve traditional funding lines, particularly attractive during periods of expansion when "tight" money conditions exist. Through leasing, it may be possible to pay for equipment "on time" without the payments counting as a form of indebtedness.

4. Tax Advantages.
Congress is always "fine-tuning" the tax laws and leasing continues to come out as a viable alternative. Leasing may provide the means to minimize the negative impact of the Alternative Minimum Tax (AMT). Even non-profit organizations such as hospitals, state and local governments which are confronted with budget limitations and cannot take advantage of tax benefits turn to leasing. Remember, lease payments are essentially made from pre-tax dollars and not from profits. Of course, with any tax or accounting issue, you should consult with competent, professional advisors.

5. Accounting Treatment, Capital or Operating Leases.
On the balance sheet or off, there may be a lease structure which can be designed to address your firm's accounting needs. Equally important, leasing may reduce your bookwork costs and promote the budgeting integrity of operation.

6. 100% Financing.
Leasing provides 100% financing (which may include shipping and installation charges), eliminating such lender requirements as down payment and compensating balance on deposit.

7. Flexibility.
Normally beyond traditional methods of financing, leasing provides payment structures, terms and end of lease options which give you latitude to purchase your equipment, trade-up or add-on. Your needs define your lease.

8. Fixed Rates.
A hedge on inflation and rising interest rates, leasing protects against market fluctuations. You are better able to predict your future operating expenses. Your lease allows you to use equipment well into the future, paid with today's dollars.

Equipment gives you the competitive edge, and leasing gives you the equipment. Capital fuels your operation, and leasing conserves capital. Stability, costeffectiveness, convenience, flexibility - those are the elements of equipment leasing. So why go one more day without the equipment you need?