It's about efficiency and adequate cash cycles
Leasing allows you to meet your goal of growing tomorrow without overstretching your cash position today - regardless of whether your growth hinges on a new factory, machinery, vehicles, information technology or medical equipment.
There are plenty of benefits to leasing rather than buying something outright, including:
Spreading Expenses:
Reducing your up-front cash outlay by spreading an expense over a longer period of time
Flexibility:
We'll help you tailor your payments to accommodate your company's cash flows. Payments could be tailored to be monthly, quarterly, semi-annually or annually in addition to having a flexible structure as step-up, step-down, fixed, balloon or seasonal instalments
One-Stop-Shop:
Working with a single financing house to arrange a package of assets and minimize the administrative burden of dealing with multiple suppliers
High-quality advisory:
Odds are good that whatever transaction you're contemplating, we've done one like it before, leaving you ideally positioned to benefit from our base of institutional knowledge and experience.
Access:
If you're looking to work with one of our Vendor Partners, our relationship may give you better access to maintenance and additional value-added services
Peace of mind:
All of our leases can include insurance coverage if necessary
In addition to being cash flow-friendly and enhancing your borrowing capacity, leasing can:
Recognize income tax savings
Tackle existing cash flow mis-matches through sale and lease back transactions
For new businesses, negotiate a step-up mechanism, so your payments are modest at the beginning and rise in value over time
For existing businesses with stronger cash flows, go for a step-down arrangement with higher initial payments
Plan for the obsolescence of assets in a disciplined way
Save time: The documentary requirements for leasing are substantially less than those required for bank loans.
Did we mention we are a partner?
We're here to help, not bury you in paperwork. We look for reasons to approve your business case, as we believe character counts. We view every new relationship as the start of a long-term journey, whether you're looking to acquire common office equipment or highly specialized machines.
Speed
We're faster than banks
Criteria
We employ a quantitative and qualitative criteria that is both unique and timely
Scope
We specialize in working with corporations of all sizes, as well as SMEs
Flexibility
We help you avoid cash flow mis-matches
Leasing vs. Bank loans
| Lease | Bank loan |
|---|---|
| Simple application | Extensive documentation required |
| Frees up capital | Reduces available credit lines |
| Hedge against inflation | Extensive additional collateral |
| Flexible, can match your cashflow cycle | Not flexible |
| No additional collateral | Maybe cancelled by lender |
| Potential tax advantages | |
| Easy add-ons and trade-ups | |
| Preserve credit lines | |
| No or minimal down payment | |
| Easier budgeting | |
| Lower fees |
Why Pay Cash?
Generally speaking, paying cash for an asset rather than seeking external financing:
- Disregards the time value of money
- Depletes cash reserves
- Has a negative impact on the balance sheet
- Reduces cash position