Why Lease?

Why Lease?

Conserve Capital

Needed equipment can be acquired without depleting capital that may be needed for other business purposes. Also, productive assets can be obtained for the purpose of earning profits for your business when internal capital for purchasing equipment is not available.

New Line of Credit

A lease line can be viewed as another line of credit that does not impact a company's existing bank credit arrangements.

Fixed Rate Financing

Lease payments are fixed at the beginning of the lease for the entire term which makes budget and cash flow planning easier. Fluctuation in market rates have no impact.

Full 100% Financing

No down payment is required on a lease. In addition, Rainier Funding Services is generally able to finance not only the equipment, but the following as well:

• Delivery
• Freight
• Training

• Installation
• Field Engineering
• Monitoring

• Maintenance
• Software
• Consultation & Professional Fees

Use vs. Ownership

In many cases it is the use of the equipment, not its ownership, which is the important element in its value to a business. The risk of technical obsolescence may make the additional costs of ownership unjustified and the flexibility that leasing provides may be lost.

Tax and Accounting Considerations

Lease payments are usually fully deductible expenses over the term of the lease and many times provide a quicker cost recovery than is possible with the depreciation of a purchased asset. Depreciation expense for purchased equipment enters into the Alternative Minimum Tax (AMT) calculation so that leasing equipment instead of owning it may help your company avoid liability resulting from the AMT. Leasing may allow you to take advantage of off-balance sheet accounting that can have a positive effect on your bottom line.

Leasing is one of the fastest growing ways of acquiring equipment and opens up a whole new range of strategic opportunities. If you would like to explore some of these concepts further one of our leasing professionals will be happy to assist you. Feel free to call Eric Will at (315) 671-8718.