Reasons to Lease
Benefits of Leasing
Types of Leases
Frequently Asked Questions (FAQ)Why lease versus paying cash? When considering financing, many follow the business rule to invest in assets that appreciate and finance those that depreciate. When financing assets that depreciate such as high technology, the obsolescence risk transfers to the leasing company.
Example: $25,000 is available in cash to purchase equipment. Consider the following example if investing that same $25,000 elsewhere. Invest the $25,000 in an aggressive five year investment with an average return of 15%. After five years, the $25,000 is equal to $50,284. then finance $25,000 in equipment in a five year lease with a monthly payment of $517.50 and an end of the lease option of 10% with a one time origination fee of $250.
The cost to lease, not including the 10% option is ($517.40 x 60) +$250 = $31,300. Comparison:
Can I stop the lease? The lease is non-cancelable. However, if you need new equipment or need to upgrade, we'll structure a new Upgrade Lease. If you need to terminate the lease, we'll figure a buyout. You could then either pay the buyout and return the equipment or pay the buyout plus the purchase option and keep the equipment.
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