Leasing is just another way to finance the acquisition of equipment a company needs. In fact, it is the largest source of external financing in America today, accounting for more than $230 billion worth of equipment leased in 1998 alone. In every equipment lease transaction, a sale does take place. The Dealer sells the equipment to someone, who then leases it to the End User. That someone is the Funding Source -- a company that is in the business of providing the funds to buy the equipment being leased. Such companies may or may not have lease or leasing in their name, or they could be a bank or other financial institution. Eighty percent of major corporate and not-for-profit entities use equipment financing or leasing to acquire the use of capital equipment. These entities know that benefits, such as higher productivity and profits, come from using new equipment, not necessarily owning it. Equipment Financing and Leasing can provide the alternative.
Leasing allows the Customer to acquire the latest technology without bearing the associated risks, mainly obsolescence. The Customer can easily stay current with technological changes through upgrades and additions to leased equipment. 80% of Business and Government agencies Now Lease at least some portion of their equipment. Many major Corporations acquire Equipment Exclusively through Leasing. The Equipment Leasing Association (ELA) survey indicates that approximately 70% of small businesses are currently using leasing as a source of funds and 40% have used leasing in the past. Moreover, office equipment and computers represent 67% of the equipment type financed through leasing. Equipment Leasing offers 100% Financing and more liberal terms than purchase. The Equipment pays for itself with the profits it generates. The cost of Leasing is a business expense, and is therefore Tax Deductible for the life of the lease.
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