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Leasing defined (Leasing 101)
A lease is a contractual arrangement in which a leasing company (lessor) gives a customer (lessee) the right to use its equipment for a specified length of time (lease term) and specified payment (usually monthly). Depending on the lease structure, at the end of the lease term the customer can either purchase, return, or continue to lease the equipment.
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Leasing works for any type of business
Every imaginable type of organization leases throughout the world including proprietorships, partnerships, corporations, government agencies, religious and non-profit organizations. Over 80% of American businesses lease at least one of their equipment acquisitions and nearly 90% say they would choose to lease again
Almost limitless possibilities
You can lease anything associated with the operations of your business (including all types of capital equipment, hardware, software, and soft costs such as installation and consultation
How leasing is done at Questor
Fill out a short online lease application. Questor will review your application and contact you the moment you are approved to begin the leasing process
Leasing has become the preferred method of acquiring equipment among businesses. Currently, 35% of all equipment is leased. Leasing offers real advantages including better value, more convenience and greater control.
Advantages of Leasing/ Leasing is a Better Value
Make better use of your money
- Conventional bank loans usually require more money upfront than leasing and often have restrictive covenants.
- Conventional debt financing may require a 10-20% down payment. Leasing generally requires only one or two payments upfront, which are applied to your future payments
Finance 100% of your costs
In most cases, the full amount of the equipment, as well as the service, shipping, installation costs and maintenance can be included in the lease. This spreads the cost out evenly over the term of the lease freeing up your money to work harder for you
Realize significant tax savings
Monthly payments on operating leases are typically viewed as operating expenses offering significant tax benefits. You should always consult with your financial advisor to determine the most tax-beneficial lease for your company
More Convenient
Speedy and easy
With Questor Financial, most applications receive credit answers within 8 business hours. This means that you can acquire equipment now, so your business can focus on increasing revenues
You can tailor a solution that meets your requirements
Leasing is flexible so that you can tailor the length and amount of your payments to meet your business' needs
- "step-up" leases allow you to start with low payments that increase over time so you can concentrate on using the equipment to generate revenue.
- "skip" leases restrict payments to given months of the year so you can plan ahead to cover the slow times. "deferred payment" leases allow a significant grace period before your first payment is due.
- "master" leases offer a more convenient way to add more equipment to your existing lease.
Greater Control
Avoid the risk of your equipment becoming obsolete
With ownership you run the risk that new technology will render your equipment obsolete within a few years, leaving you with equipment that no longer meets your needs and that is difficult to sell. Leasing allows you to replace or upgrade equipment to keep your business competitive
Improve your cash flow forecasting
The fixed nature of a lease obligation eliminates uncertainty about the future cost of the equipment. Your lease payments facilitate more accurate forecasting and planning
No ownership dilution
Leasing allows you to increase the cash flow of your company without bringing in investors to finance capital expenditures.
Why should you choose Leasing?
WHY DO SMART BUSINESSES CHOOSE LEASING?
100% Financing
Leasing provides 100% financing. Software, hardware, consulting, maintenance, freight, installation and training costs, may be included in the lease.
Free Up Capital
Leasing conserves your working capital by requiring only a minimum initial outlay of cash - usually just the first and last payment. This frees your working capital for other profit generating activities or investments.
Save bank lines of credit
Leasing preserves your bank line of credit so that you are ready should a business opportunity or unexpected demand for cash occur.
Tax advantages
Leasing allows you a dollar for dollar write off of the lease rental payments. With the new tax laws, the depreciation advantage of ownership is far less attractive when compared to leasing. Profitability is derived from the use of the equipment not the ownership.
Benefit today with tomorrow's dollars
Leasing ensures your lease rental payment will remain constant. You can acquire today's equipment with tomorrow's dollars.
No obsolete equipment
Leasing affords you the opportunity to add-on, upgrade or replace obsolete equipment. Because flexibility is one of the greatest benefits of leasing, you never have to be stuck with old, out-of-date equipment.
Custom tailored to your needs
Leasing can be tailored to fit your budget requirements. At the end of the lease term, you will have the option of purchasing the equipment, re-leasing the equipment or simply returning the equipment to the Lessor.
Convenience
Leasing is convenient. You only spend a few minutes arranging a lease. Questor Financial does the rest.
The financial advantages
Improved cash flow and working capital. With an equipment lease, you get 100% financing. Your payments often are lower than with other types of financing. In fact, they're a fraction of the total purchase price, and may even qualify as a pre-tax expense. And because a lease may be considered off-balance-sheet financing, it leaves your credit lines intact for other business uses.
Predictable expenses and an inflation hedge. With the lower, fixed-rate payments of an equipment lease, you're protected against inflation. You can budget and forecast with greater confidence, too. Not only that-the equipment you use today will be paid for with tomorrow's dollars.