Acquire Faster Approvals and Funds of Operation
An operating lease, also known as a fair market value lease, allows businesses to essentially “rent” equipment with off-balance sheet financing.
- No down payment is required
- Conserves working capital
- Enables companies to manage their budgeting cycle
- Multiple lease items can be bundled – hardware, software, and services, etc.
- No impact on current bank covenants
- Can deduct entire lease payment as operating expense
- Provides protection on equipment that decreases in value rapidly (technical obsolesce)
- Allows for a technology refresh – swapping the asset for a newer technology
- Faster approval than with typical bank loan
- Master lease agreements make follow-on transactions much easier
- Offers flexibility at end of lease term; renew, return or purchase equipment