10 Reasons to Lease with Systems Financial Credit

While you are considering new equipment for purchase, please keep in mind that it may not be in your best interest to buy the machine outright.  There are at least 10 very compelling reasons for leasing the machine instead.

1.      Gain Major Tax Benefits
You may deduct your monthly lease payments as an operating expense.  Leasing also helps you avoid the Alternative Minimum Tax (AMT).  With capital leases, you may also deduct up to $25k of your capital expenditure.  

2.      Conserve Capital
Cash is always king.  Keep more of it at work in your business by leasing. You will be free to spend on other items such as inventory, personnel, advertising, if your money is not tied up in equipment costs.  This will give your company more financial flexibility.

3.      Preserve Credit
A major equipment purchase can tie up your line of credit.  Leasing will not.  You will have more capital and borrowing capacity at your disposal from your local bank when you need it.

4.      Enjoy Flexibility
Structure lease payments to fit your company's budget and cash flow.  With structured lease transactions, you may adjust your payments with tools such as skip payments and end-of-lease purchase (put) options.

5.      Improve Cash Flow Forecasting
Fixed monthly payments help you budget your cash flow with certainty into the future.

6.      Cover 100% of Your Equipment Costs
You can include all the soft costs related to your equipment purchase (i.e. shipping, software, installation, tooling, taxes) right into the lease.

7.      Fix Your Payments
By locking in your rate and payment amount for the duration of the lease, you will avoid future inflation risk (i.e. same as interest rate risk).

8.      Enjoy Longer Terms
Many financial institutions prefer to lend money on a shorter-term basis, typically 12 to 36 months.  Leasing allows you to extend the term up to 84 months on qualifying equipment.

9.      Pay as You Go
Leasing provides you with the use of the equipment for an agreed-upon monthly payment.  This allows you to leverage the latest technology without making a major upfront investment.

 10.  Purchase, Upgrade or Renew
At the end of your lease term, you can choose to purchase the equipment, return it and upgrade to new equipment or continue to lease at a substantial savings.


Systems Financial Credit -- Quick, easy financing for all your manufacturing and capital equipment needs.


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Copyright Machinery Systems, Inc. 2009. 847.882.8085. email: msi@machsys.com