Dynamic Funding

A Helpful Guide for the Lessor and the Lessee

What are the advantages to leasing?

Whether you are a lessor or a lessee, this guide explains the many ways leasing can help companies better manage business operations, systems, solutions and capital more effectively.


Benefits of leasing assets or offering leasing

Conservation of Capital

With a lease, a customer’s (or lessee’s) capital isn’t tied up in equipment or system costs. It’s free to be spent on other items such as additional office space, training or personnel.

100% Financing

Leasing allows customers to finance up to 100% of the equipment cost plus certain “soft” costs such as maintenance, delivery and insurance right in the lease, minimizing up-front cash requirements.

Fixed Payments

Customers can lock-in payments now while avoiding the risk of rising interest rates in the future and simplifying the budgeting of monthly cash flows.

Flexibility

Leasing allows customers to structure payments to fit their budget. We offer a variety of traditional and customized structures to meet a customer’s needs.

Easier Cash Flow Forecasting

Fixed monthly payments help customers budget money into the future.

Purchase and Renewal Options

At the end of the lease, customers may choose to purchase the equipment, upgrade to a new system or continue to lease via an ongoing renewal of their contract.

Obsolescence

Leasing keeps equipment and systems up to date. As a business grows, the equipment or technology may become obsolete or outdated. Leasing offers customers the flexibility to upgrade to new and better technology to match their current and future needs.

Tax Advantages

Leasing allows customers to deduct monthly lease payments on a true lease as an operating expense.

Off-Balance Sheet Financing

In some instances, customers may be advised to keep their equipment “off-balance sheet.” Depending on the lease structure and the accounting treatment, a lease may qualify for off-balance sheet treatment which may assist them in acquiring the equipment they need while:


Why Organizations Use Leasing to Their Advantage

The benefits associated with leasing are mostly economic. However, many times an organization will justify leasing for convenience.

Cash Flow

Technology Hedge

Convenience

Summary


Dynamic Funding, Inc. has financial modeling tools that can help you evaluate lease versus purchase options using your financial information or your customer’s financial information. It is best that we are involved at the outset of the acquisition process to ensure you or your customers have all the right information with respect to leasing.

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