| Home > Vendor Gallery > Customer Benefits |
|
|
||
|
|||
|
Home Page About PCG Vendor Gallery - Vendor Services - Sales Wizard Software - Easy as 1,2,3 - Profitability Calculator - Vendor Benefits - Customer Benefits - Leasing in Perspective - Common Questions - Leasing Glossary Products - Types of Leases - Payment Plans - New Business Leasing - Government Leasing - Future Technology e-Lease Dealer Registration Contact Us |
 Leasing Conserves CapitalLeasing Provides Tax-Timing AdvantagesLeasing Provides an Alternative Credit SourceLeasing Lessens The Impact of InflationLeasing Overcomes Budget LimitationsLeasing Provides Obsolescence ProtectionLeasing Conserves Capital We live in a world where demands on working capital always seem to exceed supply. Provident Capital Group's Leasing Programs can relieve the strain on your customers' cash. This means customers will have more money available to put into profit-generating activities, such as expanding their sales force or inventory, funding increased advertising, or enlarging manufacturing capabilities. Even customers with healthy cash flows will be interested in leasing's tax advantages and capital conservation. The compounded earnings of invested capital saved through leasing often offsets a substantial portion of the lease payments. It's no wonder that over 50% of all high technology equipment sold in the United States year-after-year is leased. Leasing Provides Tax-Timing Advantages Lease payments are normally treated as a fully deductible operating expense for tax purposes. This means that the actual cost of the lease to the customer could be expressed in after-tax dollars. For a company in a 34% tax bracket, the net after-tax payment actually costs significantly less than what appears on the invoice. In addition, while the tax benefits of equipment ownership are recovered over a long period of time through depreciation, the tax benefits of leasing are realized immediately over the term of the lease. This means that the tax savings from leasing are realized in three to five years, depending on the lease term, while the tax savings from ownership (depreciation) are often spread out over seven years or longer. Leasing Provides an Alternative Credit Source Leasing provides your customer with an additional source of financing -- meaning an additional way to obtain the use of your equipment! Leasing offers 100% financing, which, unlike a bank loan, means no down payment. Taxes and maintenance can be included in the cost of a lease, so the customer takes care of all expenses with one monthly check. Plus, when the customer leases, the decision has no effect on bank lines -- the existing line of credit the customer has established remains intact for other essential needs. This feature is vital to expanding businesses because growth demands working capital from every possible source. Leasing Lessens The Impact of Inflation Inflation is a fact of life. Every year the dollar declines in value. By leasing, customers protect themselves from changes in rental rates because the lease rate is locked in for the entire term. Leasing lets customers turn the inevitability of inflation into an advantage by making fixed lease payments with dollars worth progressively less. In addition, customers get the equipment they need at today's prices and pay with tomorrow's less valuable dollars. Leasing Overcomes Budget Limitations With a variety of payment terms available, most budgets can easily handle the annual cost to lease equipment. The only capital outlay is the initial lease payment. Besides expanding the effectiveness of your customer's budget, the low payments have another important result: your customer is able to acquire all of the equipment he needs and is not forced to "get by" with less because of tight budget restrictions. Leasing Provides Obsolescence Protection As their businesses grow and change, your customers may need equipment with increased capabilities or additional accessories. The "Future Technology Option" available under the Provident Capital Group's Vendor Leasing Programs allows leasing customers to add to or upgrade their equipment at any point during the lease term. Adding to or upgrading equipment is as simple as contacting your Provident Capital Group Representative to learn the status of the current lease and filling out a new lease application. Once credit has been approved, new lease documentation can be immediately prepared, the new equipment can be installed and the customer will receive one convenient, consolidated monthly bill.  |
|
|
||||
