NwTractors.com Rentals - Backhoe Lease vs. Purchase vs. Loan  

Many companies know they need equipment, but are unsure which is the best way to acquire it, whether by purchasing it outright, using a line from their bank, or leasing. It can be a tough decision for a business owner to make. A wrong choice can have serious consequences on any business.

Why Lease??
  Leasing pays for itself. Your profits come from the use of the equipment, not the ownership of it. When you lease a computer, it earns its worth because you pay for it as you use it. Would you pay your office staff their salaries three years in advance? By leasing your computers with monthly payments, you don't have to pay for the whole thing up front. You can keep that cash free to invest in appreciating profit-making assets. Your new equipment makes money while your liquid capital is retained. That's effective cost management.

Total Flexibility
  Leasing can cover most soft costs which aren't included in other methods of financing such as installation, freight and contracts.

Cost Control
  Easy to budget monthly payments. Interest rate fluctuations will not impact monthly payments, rental is fixed, predictable and budgeted.

Credit Line Maintenance
  Borrowing capabilities with your banks are not impacted. A lease is an off-balance sheet transaction and is not considered a loan. Therefore, it does not reduce your lines of credit. It also improves return on assets, liquidity, solvency, and other key financial ratios.

End of Lease Options
  You have choices that ownership does not provide. You can purchase the equipment at the fair market value, return the equipment, or upgrade the equipment to the latest generation.

Tax Advantages
  Lease rentals are a business operating expense. You can realize total expense deductibility rather than just depreciation, as in an installment loan.

Obsolescence Avoidance
  Lease terms can minimize your company's time commitment, making it easier to take advantage of emerging technology. CapitalWerks, LLC assumes the risk of obsolescence, not you. Leasing provides a low cost, flexible method of providing your most valuable asset ÷ your employees÷with the most productive tools available, thereby realizing a greater return on your investment in your employee.

Please email or call and let us know how we can assist you in obtaining the financing your business needs!



























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