LEASING ADVANTAGES

Advantages of Leasing

  • Increased Cash Flow
    • Managing cash flow is a challenge for businesses of all sizes especially when you need to add or replace equipment. Leasing can put that equipment to work for you without a major capital investment and with real cash-flow advantages.
  • Permits Alternative Uses
    • A leasing arrangement provides the use and control over the assets without incurring huge capital expenditure and only requires making periodic rental payments. Thus, leasing saves funds for alternative uses.
  • Faster and Cheaper Credit
    • Leasing companies are generally more accommodating than banks and other financial institutes in respect of terms of financing. As such, it has generally been found that a leasing arrangement is cheaper and faster as compared to acquisition of assets through other sources of financing.
  • Increased Borrowing Capacity
    • Leasing arrangements enable the lessee to use more of its own funds for working capital purposes instead of using low yielding fixed assets. The debt-equity ratio of lease does not alter because of assets acquired under lease arrangements. As such lease arrangements can resort to further borrowings in case the need arises.
  • Managed Market Volatility
    • Unlike bank lines of credit, with variable rates, lease payments are fixed – no matter what happens to the market tomorrow.
  • Absence of Restrictive Convenience
    • The financial institutions while lending money usually attach several restrictions on the borrowers regarding management, debt-equity norms, declaration of dividends etc. There are no such restrictions in the case of lease financing.
  • Tax Advantages
    • When structured properly, an equipment lease agreement may allow you to receive tax benefits such as treating the lease payment as an expense. Any asset that depreciates in value should be leased so you can write it off quicker against anticipated profits.
  • Inventory Management
    • No need to incur costs of purchasing, storing or maintain spare propeller units.
  • Leveraged Expertise
    • In-house training for maintaining your propellers for line maintenance.
      Field support from a certified MT distributor.
  • Shareholder Confidence
    • No surprises on financials due to unexpected equipment failures or maintenance.
      More capable in meeting analyst outlooks and a much more positive shareholder sentiment.