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Capital Connection "Leasing" has
advantages. Ask your business advisors which features work for
your business!
Simple "One Page" Application, with
no business plan or financial statements, for funding up to $75,000!
Let's Compare the Benefits Between a Lease and
a Loan!
| A loan requires the business owner to make
a down payment on the equipment. The loan finances the remaining
amount. |
A lease requires little or no down payment and
finances only the value of the equipment, deducting payments
during the lease term. The business owner has options
to buy the equipment for its remaining value at the end of
the
lease. |
| A loan may require the borrower to pledge other assets
for collateral. |
The leased equipment is usually all that is needed
to secure a lease transaction. |
| The business owner bears all the risk of
equipment devaluation because of new technology. |
The customer transfers all risk of obsolescence
to the lessors. With a lease there is no obligation to own
equipment at the
end of the term. |
| Business owners may claim
a tax deduction for a portion of the loan payment as interest
and for depreciation, which
is
regulated
by
IRS depreciation
schedules. |
With a "true lease",
the business owner may claim the entire lease payment as
a tax
deduction. The equipment
write-off is tied to the lease term, which may be shorter than
IRS depreciation schedules. The result is a larger tax deduction
each year. The deduction is also the same every year, which
may simplify budgets. (Equipment financed with a conditional
sale lease is treated the same as owned equipment.) |
| Financial Accounting Standards require owned equipment to
appear as an asset with a corresponding liability on the balance
sheet. |
Leased assets are considered expenses,
when the lease is an operating lease. These assets do not appear
on
a balance
sheet, which
may not affect the business's ability for traditional funding. |
Using "Today's Dollars", or deferring
payment to a time in the future, when based on generated "Cash-Flow" revenues,
makes leasing a wise choice for most business structures.
Please consult with your Financial Advisors as
to which funding plan best suits your business
tax strategy.
Click Here to Apply! |
