Online Lease Application
In order to make the purchase process easier for our customers we have combined forces with Amano Business Credit to provide alternative funding for our equipment.  Simply click this link to be taken to our secure online lease application.  Once you submit the lease application you will be contacted with the results of your application.

Winning With Leasing

by Joel Ronan, Amano Business Credit

In business, cash is king. Though arguable on the surface, without ready cash or an open credit line, a company's ability to grow is severely hampered. That's why leasing business systems instead of buying them makes sense.

Attractions of Leasing

It's the use of tools that makes money, not ownership. Leasing allows such use of equipment, with attractive terms compared to purchasing. From the accounting standpoint, there are two kinds of leases: operating leases and capital leases. Both have distinct advantages. (Note: When considering lease options, consult a tax or accounting professional for advice in your specific situation.)

Operating leases may offer more up front tax advantages, since payments are often fully deductible, while capital leases often provide tax benefits as long-term depreciation and interest deductions.

An operating lease, similar to renting, typically requires that the equipment be turned in at lease expiration, or purchased at fair market value. While payments are lower than with capital leases, the equipment cost at lease end is much higher since the purchase price is its current fair market value, a disadvantage for customers who wish to own the equipment.

A capital lease is similar to financing. Typically, the equipment cost is depreciated over time, and interest expense deducted on financial statements/tax returns. Generally, capital lease payments are not directly expensed as in operating leases. A capital lease often allows purchasing the equipment at lease end for a nominal amount, such as one dollar, or 10 percent of the original cost.

What are the advantages of capital leases over bank financing? A capital lease, in effect, provides 100% financing conveniently, whereas a bank loan usually requires a 20%-25% down payment, plus more paperwork and application time. Capital leases are often arranged via a one-page credit application "in-house" through a reseller within 24 hours, whereas bank financing requires a visit to a bank, filling out a more complex loan application, providing financial statements, and longer processing time to comply with bank policies, financial disclosure rules, and FDIC regulations.

Another attraction of operating and capital leases is both leave customers' lines of credit free for the expenses of expansion. Bank lines of credit will be fully intact when or if the customer needs to tap the line for important strategic moves.

A few situations argue against leasing equipment:
(1) If the company has extensive cash reserves, and needs no tax or accounting advantages associated with leasing, or
(2) If the company intends to pay off the equipment lease in a few months. The short length of time makes leasing inefficient.

Click this link for more lease information.