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Welcome to TMG Leasing
"Solutions for the Small Business World"
Advantages of Leasing Equipment
Conservation of Capital
When capital is conserved by leasing
equipment, it
can be used for other company uses (increasing inventories,
expanding sales, etc.)
Conservation of Credit
A lease is not a loan. Borrowing reduces
lines of credit. Leasing is thus a New credit source, which allows the
customer increased borrowing capacity.
Off Balance Sheet Financing
An operating lease keeps the debt, and
the
corresponding asset, off the company’s balance sheet. Therefore,
borrowing debt covenants are circumvented, financial ratios are enhanced,
borrowing capacity is increased and the company appears healthier.
Eliminates Obsolescence
The latest technology is available which
maintains a competitive edge. Structured leases can allow upgrade and
trade-up options to customers.
Tax Benefits
True lease generally allows 100% of the
monthly
payment to be expensed where as bank financing
would only allow
expensing the interest costs
(Accelerated Depreciation).
Flexible Financing
Leasing provides fixed rate financing
with specially structured terms to accommodate the specific need
of each and
every company. These structured leases include step up, step down,
deferred, and seasonal payment plans.
Why people lease?
Companies lease equipment because leasing
represents the best use of their financial resources. Businesses which do
not lease operate at a competitive disadvantage. They deny themselves the
productivity-enhancing effect of better equipment which they could otherwise
obtain. They operate with older equipment
than they could otherwise afford.
Ultimately, they may
lose the ability to compete, having higher costs and
lower productivity than better-run operations.
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