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Pre-packaged Pre-Installed No Headaches |
| Pre-packaged
Pre-Installed No Headaches
Virus-free
Dedicated Business Computer
Tax Benefits
Conserve Cash and Credit
Lines
Leasing
Eliminates Equipment Obsolescence
Off Balance Sheet Financing
Avoidance of
Financial Restrictions
Small Initial Cash Outlay
Rent Expense
Warranty Pass Through
Simplified Credit Process
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With the Property3 Lease program you do not have
the heacaches of installation issues and application compatibility
hurdles. All machines come pre-installed, configured, and tested
with Property3 Management Software. |
Virus-free Dedicated Business Computer |
| There is no denying the damage computer viruses have done
worldwide. Experts estimate that most home computers are still
infected with lurking viruses that cannot or have not been cleaned.
With the Property3 Workstations you can now operate like a business
should, with a dedicated workstation for your business. Thereby
lowering the virus risk. |
Tax Benefits |
| Lease payments are usually fully tax deductible as a business
overhead expense. With purchase arrangements you can only depreciate
the equipment and write off a portion of the interest. Leasing
typically offers you a full write-off with 100% of your monthly
payment being deductible |
Conserve Cash and Credit Lines |
| Acquiring today's equipment means parting with
a major part of a company's cash reserves or credit lines. Leasing
allows the customer to retain cash and credit lines for current
needs, emergencies, loans or other investments. |
Leasing Eliminates Equipment Obsolescence |
| Through leasing you have the flexibility to
upgrade the equipment at any time during the lease term. Providing
freedom from the worry of possible obsolescence, while at the
same time avoiding significant changes in your monthly payment. |
Off Balance Sheet Financing |
| Provided the lease is structured properly the
‘lease debt’ does not have to be shown as a direct
liability on your financial statements and consequently may
allow you to preserve your borrowing availability with your
bank and other creditors. This may also result in improved debt-to-equity
and earnings-to-fixed assets ratios thereby improving how the
lending community views your company in general. Certain types
of equipment leases may be obtained with a simple one-page application
rather than pounds of financial data |
Avoidance of Financial Restrictions |
| Many bank, commercial loan and credit line
agreements significantly restrict additional borrowing or
financing. Some of the typical restrictions are:
- In some instances a borrower must obtain the permission
of an existing lender to do business with any other lender.
- In some instances loan agreements require that the Borrower
maintain a certain level of compensating balances at the
lending institution.
- In some instances loan agreements contain requirements
that the Borrower provide periodic financial information
and that certain specific financial ratios are maintained.
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Small Initial Cash Outlay |
| Equipment leases generally do not require a down
payment, as is the case with most loans. The cash, which is
required at inception of an equipment lease, is generally applied
to periodic rental payments thereby reducing your outstanding
balance. This is distinguished from borrowing or financing because
leasing can provide 100% financing while borrowing generally
requires a down payment of between 10% and 20% of the amount
requested thereby only providing 80% - 90% financing. |
Rent Expense |
| Provided the lease is structured properly you
may be able to deduct the entire rental payment as a current
operating expense for financial reporting and for income tax
purposes. This can reduce your overall tax liability and therefore
reduce the ‘real cost’ of acquiring equipment. |
Warranty Pass Through |
| Although the lessor is the owner of the asset
the Lessee will have the full benefit of all manufacturers and
seller’s warranties and guaranties. |
Simplified Credit Process |
| An equipment lease is generally easier to obtain
than an equipment loan. It is not uncommon for leasing companies
to provide up to $75,000 in financing with only an application.
Some leasing companies will go as high as $150,000 on the same
basis. Most banks and commercial lenders require a complete
financial package consisting of several years’ financial
reports and tax returns on the business and the principals.
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