11. Accelerate growth: Leasing can help companies grow faster in other ways. It allows a company to add equipment more quickly and pay for it over time.

12. Meet needs: A main reason businesses lease equipment is that leasing meets the needs of so many types and sizes of businesses. Mature, profitable companies may lease equipment to keep bank-credit lines open. Young companies typically lease to conserve cash or because they don’t yet qualify for traditional financing.

13. Accrue tax savings: For accounting purposes, a lease has historically been treated as an “off-balance sheet” entry and not considered a long-term debt or liability, and has not been recorded on the balance sheet but listed in the footnotes instead. Equipment leasing, when structured properly, may have certain tax-deduction benefits as a business writes off payments as an operating expense.

14. Receive a quick response: Leasing generally has a quick response. Some leases can be approved within hours through minimal documentation. Small-ticket equipment leases (less than $100,000) often require little documentation and have a quick turnaround time. Leases more than $100,000 require more documentation and more time.

15. Take advantage of flexibility: Types of equipment vary from business to business, but almost all types of equipment can be leased. Some examples are construction equipment, motor vehicles and trailers, manufacturing machinery and software, office furniture, medical equipment and computers. Installation costs often are included in the lease.

Many businesses suggest following the motto: “If it depreciates, lease it; if it appreciates, buy it.” Savvy business-owners understand the benefits of equipment leasing. They also understand how to use equipment leasing as a tool to gain a competitive advantage.

With more than 30 percent of all equipment acquired in the United States per year done through leasing, accounting for $280 billion spent annually, leasing is gaining more acceptance as a legitimate, useful commercial-financing tool.

Duane H. Marchant is president of abcCapital FUNDING Co. His company provides nation- wide commercial financing, factoring and equip- ment leasing. Contact him at (877) 624-1961. Businesses may request a free lease-vs.-buy comparison at abcfunds@sisna.com or visit www.abcCapitalFUNDING.com.

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