Why You Should Lease Your Capital Equipment
Many customers ask why they should lease their capital equipment instead of paying cash or getting a bank loan. The bottom line: Leasing offers many ways to make your company more profitable.
This is the number one reason why some otherwise-strong companies are no longer in business. Putting all of your money into a few major purchases, such as capital equipment, draws on funds needed for the inevitable, unexpected necessities. Even a bank loan will generally require you to pay 25% of the original cost as a down payment. Lease financing requires only two monthly payments in advance, usually totaling less than 5% of the equipment cost.
And while most banks limit their loan terms to three years, we can offer five year financing. That helps your cash flow, too, because longer terms typically keep the payments lower.
Many of our clients have complained about complicated depreciation schedules for their capital equipment. Determining which depreciation format is best for you can be difficult, even for a CPA. Leased equipment is much simpler to account for: you can list it as an expense, just like the rent for your office space.
Anyone who has applied for a bank loan is well acquainted with the lengthy process and ceaseless paperwork. We offer a Speed Lease program that requires only a one-page application (and we write all of our documentation in plain English).
Let the trained staff at Mercury Capital show you how simple and profitable Lease Financing can be. So you can breathe easier.