When Equipment Leasing Makes Cents

WHEN LEASING Makes CENTS OWNX LEASE Some of the most successful small businesses in America never purchase their equipment... they lease it! Equipment leasing makes sense for a lot of businesses today because leasing provides many benefits that purchasing does not. WHO LEASES EQUIPMENT? According to the U.S. Small Business Administration... 85% 89% 75% of those companies that lease equipment will lease again in the future. of all companies lease equipment. of all companies that lease equipment indicate that leasing is their best means for financing equipment purchases. Industries That Lease Equipment Construction & Contractors Agriculture Trucking & Delivery Landscaping General Business Offices Restaurants Medical & Dental Gyms & Fitness Centers And many more! BUSINESSES OF ALL SIZES LEASE EQUIPMENT WHY CHOOSE LEASING? Credit rd UPGRADE A7376 If you do not have adequate funds. If you do not have the credit to purchase assets, then leasing is a great option. If your company relies heavily on equipment to do business, then leasing gives you flexibility to change or upgrade your equipment. THE BENEFITS OF LEASING EQUIPMENT 1 Purchasing Power Equipment lease financing allows the lessee to acquire more and/or higher-end equipment. 2 Improved Balance Sheet Management Certain types of leases help the lessee better manage the balance sheet and improve the overall financial picture, by conserving operating capital and freeing up working capital for inventory, expansion and emergencies. 3 100% Financing With equipment leasing, there is no down payment. 4 Up-to-date Technology Leasing provides companies with the ability to keep pace with tech- nology. The lessee can The term of the lease can be matched with the useful life of the equipment. 5 Asset Maintenance Many lessees upgrade or add equipment to meet ever- choose to structure their leases to include installation, changing needs. mainten- ance and LEASE other 6 Easier Financing Than Loans With a lease, services, if needed. 7 Tax Benefits companies can As part of the government's growth stimulus initiatives, small businesses have the biggest tax deduction possibilities ever – Section 179. avoid requirements like compensating balances, large down payments, client list reviews and cash-flow projections, making the finance process faster and easier. How The Section 179 Tax Benefit Works Take a deduction $500,000 up to from your taxable income for equipment leased in 2013, 2013 Section 179 example calculation Equipment Purchases: $ 650,000 First Year Write Off: $ 500,000 $500,000 = maximum in 2013 50% Bonus First Year Depreciation: $ 75,000 $650,000 - $500,000 = 150k x 50% Normal First Year Depreciation: 20% in each of 5yrs on remaining amount $ 15,000 Total First Year Deduction: $ 590,000 $500,000 + $75,000 + $15,000 Tax Savings: $590,000 x 36% tax rate $ 212,400 Equipment cost after Tax: $ 437,600 $650,000 without all tax deductions Section 179 is set to be drastically reduced to $25,000 in 2014, so take advantage of the tax savings now in 2013! Brought To You By NATIONALFUNDING SOURCES: http://www.sba.gov http:/www.nationalfunding.com/wp-content/uploads/2013/02/Section-179-Corp.pdf http://www.section179.org/section_179_deduction html http://www.forbes.com/2007/01/24/smallbusiness-equipmentlease-IRS-ent-fin-cx_nl_0124nolo.html http://online.wsj.com/article/SB122637531714016677.html http://www.healthleadersmedia.com/page-1/FIN-268988/12-Benefits-of-Leasing-Equipment