Advantages
of Leasing.
1. Preserve Working
Capital and Cash Flow: Leasing
with Alliance Funding Inc.
conserves your working
capital for use where it
will produce the best return.
Ex: Inventory Business
Development, Accounts Receivable,
and Real Estate.
2. Credit Lines: Leasing
equipment with Alliance
Funding Inc. leaves your
existing credit lines available
for short term needs. Ex:
Inventory Peaks, Trade
Discounts, and Accounts
Receivable.
3. Tax Position: Lease payments
are 100% deductible as a business expense, as opposed
to only depreciation and interest deductions for
financed equipment. A full write off over the lease
term reduces your after tax cost substantially.
4. Budget Restrictions: Minimum
cash outlay plus modest payments enable you to fit
the lease into the tightest of budgets. When you’re
spending schedule is severely limited, leasing from
Alliance Funding Inc. makes it possible to obtain
the equipment you need when you need it.
5. Balance Sheet Effect: The effect
of leasing on financial ratios is very favorable.
Examples: Shows a faster turnover of assets, better
earning power for investment, less financial risk,
and debt to equity ratio is less.
Leasing equipment provides
profits and savings today with tomorrow's dollars.
Approximately 80% of U.S. Companies lease some,
or all, of their equipment. The U.S. Commerce
Department forecasts that 33% ($153 Billion)
of the $476 Billion worth of equipment acquired
by businesses this year will be leased.
Most equipment types, new or used, can be leased or
financed. Alliance Funding Inc. leases to businesses,
professionals, municipalities, and school districts.
Suppliers of equipment use leasing to help their customers
to obtain the equipment they need.
Favorable Financial Reporting: According to the Financial
Accounting Board (FASB), you generally can list your
lease payments as an operating expense, rather than
as a debt. Off balance sheet financing may keep your
liabilities and debt -to-equity ration low, which can
enhance your company's attractiveness to lenders and
investors. Measurements of Return on Investment (ROI)
and Return on Assets (ROA) may also look better. |
