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NORTHERN COMMERCIAL FINANCE |
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BENEFITS OF LEASINGOver 80% companies use leasing to acquire machine tool equipment. Equipment purchases are increasingly being financed through leasing transactions. The information provided below is to explain some of the reasons leasing may make sense for you. Preserve Your
Cash and Working Capital
When you lease, your current working capital is not tied up in equipment. Instead, cash and working capital remain available for opportunities such as business expansion, investment in strategic initiatives, marketing efforts or seasonal cash flow needs. Maintain Your
Credit Lines
Existing lines of credit and borrowing availability are left intact - ready to be used for operating and short-term requirements. Flexibility
When you lease, you don't get tied to equipment, machinery or computers that can become obsolete. At the end of your lease, you can buy your equipment, return it, or continue with lease payments. You have the flexibility. Northern
Commercial Finance Leasing Offers 100% Financing
Our leases can finance 100% of the cost of the equipment, including most "soft" costs. Unlike a bank loan your initial cost may be as little as one payment and a nominal documentation fee, there is no large down payment or compensating balance required. This means you will have more money to invest in your business. Customized
Solutions
A variety of leasing products are available, allowing you to tailor a program to fit your month-to-month or year-to-year cash flow needs. You are able to customize a lease program to address your needs and requirements. Tax Benefits
Lease rental payments may be deductible for income tax purposes. Leasing equipment may actually cost less, in after-tax dollars, than outright purchase. Predictable
Payments that are Protected from Inflation
Leasing offers a lower fixed payment that will not change with inflation. You can budget and forecast with greater certainty. Your future payments will be made with ever inflating dollars, which lowers your true "economic" cost of financing. Balance Sheet
Management
Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, thus making you more attractive to traditional lenders when you need them. Because an operating lease is not considered debt, it usually does not negatively impact existing covenants on lines of credit or other credit facilities. Overcome
Budget Limitations
In situations where limited budgets would ordinarily delay or prevent the acquisition of equipment due to a limit on capital expenditures, leasing allows for quick budget approval due to its small monthly expense. A lease can fit the tightest of budgetary constraints. |
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Download PDF Credit Application FAX your application to 1-763-315-7339 Call 1-800-374-0367 or 1-763-315-7326
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