Leasing is enormously popular as an equipment acquisition strategy. In fact, almost one-third of all equipment acquired in the U.S. each year is acquired on a lease contract. That is well over $200 Billion. Furthermore, about 80% of all companies (including almost all of the largest ones) lease some, or all, of their equipment. This has made leasing the largest single source of external corporate finance in America.

The popularity of leasing stems from such factors as favorable financial reporting rules, the ability to expense payments for tax purposes, the ever increasing pace of technological obsolescence and leasing’s effectiveness in improving return on investment and other financial ratios.

Most types of equipment – new and used - can be leased; Access Capital, as an emerging leader in the leasing industry, leases and finances almost all of them.

Here are some of the reasons why companies lease more and more equipment:

Preserve Working Capital

Leasing your equipment from Access Capital conserves your working capital for use where it will produce the best return. This could mean more money for R & D, Marketing and Inventory - or for investment in appreciating assets such as real estate.

Budget Considerations

Low payments on an Access Capital lease can make it possible to fit your equipment investment into the tightest budget constraints and can make the difference between being able to get the equipment you need now – or waiting years.

Flexibility

An Access Capital lease can cover soft costs such as installation, freight and extended warranties in addition to the equipment itself. These soft costs are not usually covered by other types of financing.

Cost Control

Access Capital leases incorporate easy to budget fixed monthly payments. Fluctuations in the prime rate and other economic fluctuations can not alter your costs over the term of the lease. Payments can be adjusted to specific cash flow considerations such as seasonal fluctuations, the need for ramp up time on new systems and trade up considerations to protect against obsolescence.

Credit Line Maintenance

An Access Capital lease does not impact your available credit line funds. It is like getting an additional line of credit. Also, in many instances, the lease can be structured as an off balance sheet transaction and thus not considered a liability for financial reporting purposes. This is important if your bank covenants mandate maintenance of certain financial ratios.

End of Lease Options

Access Capital can structure your lease to include your preferred end of lease option. You can purchase the equipment at the "fair market value" or for a predetermined amount as low as one dollar. You can also return the equipment or use it as a trade in to upgrade to newer and more sophisticated equipment.

Tax Advantages

Qualifying payments on an Access Capital lease are 100% deductible as an expense as opposed to only being able to deduct depreciation and interest expense, so your cost recovery is faster. In addition, certain tax law provisions may make it possible for you to expenses the entire cost of the equipment now, even though you are paying for the equipment over time.

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