Business Equipment Leasing in Colorado
Equipment leasing can be a good way to preserve
capital and manage cash flow. We can help you arrange
an equipment lease that is a good fit for your company.
Lease computers and office equipment, telecommunications
equipment, medical and dental equipment, commercial
vehicles, and construction equipment.
What is an Equipment Lease?
An equipment lease is simply an agreement by a
customer to pay a monthly rent for a specific amount
of time for the right to use equipment during the
term of the lease. The customer does not own the
equipment during the term of the lease, but is usually
responsible for insurance, maintenance and all other
costs of ownership. At the end of the lease, the
customer (lessee) has the option to buy, re-lease
or return the equipment to the lessor.
What Kinds of Equipment Can I Lease?
A wide variety of equipment can be leased, including:
- Computers
- Office machines
- Telecommunications equipment
- Medical and dental equipment
- Production equipment
- Manufacturing machinery
- Scientific instruments
- Commercial vehicles
- Construction and heavy equipment
- More...
Who Leases?
80% of all businesses, and 70% of Fortune 1000
companies lease some of the equipment they use.
Why Lease Equipment Rather Than Buy?
PRESERVE EXISTING CREDIT
Equipment leasing leaves your existing credit lines
untapped and readily available, maintaining your
access to funds for short term needs like Accounts
Receivable, Trade Discounts, Inventory Peaks, etc.
ADDITIONAL LINES OF CREDIT
Credit lines with banks are reduced when funds are
borrowed for the acquisition of equipment. Leasing
keeps those lines intact, and establishes an additional
credit line with a lessor.
USE OF EQUIPMENT VS. OWNERSHIP
Today most active businesses agree that the next
best thing to using someone else's money is using
their property. Why own something that might not
serve future needs and why take the risks associated
with ownership?
TECHNOLOGICAL OBSOLESCENCE
A company that chooses to lease can enjoy the use
of equipment without assuming the risks of either
functional or technological obsolescence.
FIXED RATE FINANCING/FIXED MONTHLY PAYMENTS
Whatever happens to market rates, monthly payments
stay fixed for the term of the lease. No need to
worry about floating rates in times of upward money
costs. No compensating balances.
OVERCOME BUDGET RESTRICTIONS
Minimum cash outlay plus modest payments enable
you to fit the lease into super tight budgets. Even
under severely limited spending schedules, leasing
makes it possible to obtain the equipment you need,
when you need it.
ALTERNATIVE MINIMUM TAX (AMT)
The Tax Reform Act of 1986 introduced a modified
AMT. The new provision requires a business to calculate
both its Regular Tax and its Alternative Minimum
Tax. Items such as depreciation, which reduce taxable
income for the computation of regular tax, are considered
preference items for the calculation of AMT. Because
depreciation is a preference item, many businesses
find leasing an intelligent tax planning and equipment
acquisition tool.
