What are the Benefits of Leasing?

Leasing offers numerous advantages over other financing methods:

100 Percent Financing. With leasing, there is very little money down - perhaps only the first and last month's payment are due at the time of the lease. Since a lease does not require a down payment, it is equivalent to 100 percent financing. That means that you will have more money to invest in revenue-generating activities.

End-Of- Lease Options. At the end of the lease you have the option to renew the lease, purchase the equipment at the agreed upon cost ($1.00 or 10%, FMV), upgrade to new equipment or return to AmeriTel Financial Services.

Preserves Credit Lines. Leasing does not affect bank lines of credit, keeping them available for important working capital needs.

Provides Tax Benefits. Leasing can offer a variety of tax benefits. This can vary depending on how the lease is structured, so please consult your tax administrator. The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible rental expense. Therefore, you can deduct the lease payments from your corporate income. One Dollar Buy-out leases qualify for the Section 179 deduction where by you can write off up to $100,000 of equipment acquisitions in the year of the purchase.

Flexibility. As your business grows and your needs change, you can add or upgrade at during the lease term through add-on or master leases. You also have the option to include installation, maintenance and other services, if needed.

Customized Solutions. A variety of leasing products is available, allowing you to tailor a program to fit your month-to-month or year-to-year cash flow needs. You are able to customize a program to address your needs and requirements - cash flow, budget, transaction structure, cyclical fluctuations, etc. Some leases allow you, for example, to miss one or more payments without a penalty, an important feature for seasonal businesses.

Asset Management. A lease provides the use of equipment for specific periods of time at fixed payments. The lessor assumes and manages the risk of equipment ownership. At the end of the lease, the lessor is responsible for the disposition of the asset.

Upgraded Technology. If the nature of your industry demands that you have the latest technology, a short-term operating lease can help you get the equipment and keep your cash. Lease equipment that you expect to depreciate quickly. Your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to meet your ever-changing needs.

Speed. Leasing can allow you to respond quickly to new opportunities with minimal documentation and red tape. We can approve your application within a few hours and you can have your equipment very quickly.

Improved Cash Forecasting. By leasing equipment you know the amount and number of lease payments over the life of the leasing period, so you can accurately forecast cash requirements for your equipment.

Flexible End Of Term Options. There are several options for disposing of equipment after the lease term ends including returning the equipment, renewing the lease or purchasing the equipment.

Improved Earnings. Operating lease accounting provides a lower cost than a capital lease in the early years of a lease.

Fixed Payments. Avoid the uncertainty of the variable rates typical of bank loans by having a fixed monthly payment.

Balance Sheet Management. Because an operating lease is not considered a long-term debt, it does not appear as a liability on your financial statement, thus making you more attractive to outsiders.