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WHY LEASE TELECOMMUNICATIONS EQUIPMENT?
With a heightened sensitivity to the value of capital
equipment,
many companies are choosing to lease. Cash flow benefits are
realized with leasing terms offering 100% financing and
manageable long term fixed rates.
Who Leases Telecommunications
Equipment?
From small companies up to Fortune 500 companies lease.
It is estimated that 45% of all telecommunications
equipment
is acquired through a lease transaction. |
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THE ADVANTAGES OF LEASING INCLUDE:
- Conserves capital by providing for use of
equipment with little or no out-of-pocket expense.
- Monthly payments may be 100% tax deductible as a
business expense.
- The equipment is paid for in the future, as their
benefits are received.
- The lease rate is fixed for the entire term of the
lease (a hedge against inflation).
- Multiple flexible payment structures are available
to maximize cash flows.
- If purchased, telecommunications equipment has an
IRS Depreciable Class Life of 5 years. By selecting a shorter-term
lease, the lessee is able to expense the equipment off over a shorter
period, sheltering more income from taxes.
- Leasing is simple. No dealing with depreciation
schedules and it's easy to budget. Leasing provides a vehicle to upgrade
or add equipment at any time as needed. With an add-on lease agreement,
equipment enhancements like a new voice-mail system can be added with
little trouble and only a small increase in the lease payment. By
leasing equipment, companies can use the increased working capital for
operating needs. As an example, the cash can be reinvested in more
inventory, or new sales promotions for generating more profits.
- Leasing complements a company's bank line of
credit. Working capital from your bank is perfect for running day-to-day
operations, but not for funding long term assets. Leasing helps to
expand a company's available credit and free up working capital for
operations.
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