WHY LEASE?

WHAT IS LEASING?

Leasing is the modern way to obtain the use of new, time-saving, productive equipment with no capital investment by the business person.

WHO IS ELIGIBLE?

Leasing is available to the business people who have demonstrated their ability to make a profit and who have a record of meeting their financial obligations.

Every business from time to time has a need for new equipment, whether upgrading the company vehicles, replacing obsolete machinery or equipment, or expanding to meet further business demands.  Leasing is a proven alternative to conventional financing.

The Fortune 500 companies all use leasing. Why?

LEASING WORKS!

Leasing Systems, Inc has fleet incentive discounts with all major manufacturers such as Ford, Lincoln, Mercury, General Motors, Dodge and Chrysler. We purchase well over 100 new vehicles each year. By buying in such a high volume, we have tremendous discounts with the manufacturers using our fleet competitive assistance program.

Many of our customers will only buy a new vehicle or truck once every 4 to 5 years. Leasing Systems, Inc is on the market on a daily basis buying 4 to 5 vehicles or trucks a week. Customers that buy a vehicle or truck every 4 to 5 years are at a disadvantage. That is where we come in.

We pass our fleet discounts and CAP (Competitive Assistance Program) on to our customers. We can save you quite a bit of money. Let our volume discounts help you save big dollars. We lease to own with small residuals at the end of the lease term.

Many of the reasons for leasing and its benefits will work for your company also:

• Lease payments are not Tax Preference items, thus alternative minimum tax is not affected.
• Conservation of working capital
• Tax rearrangements
• Negotiable rates, terms, options, etc.
• Off balance sheet financing
• Usage of new equipment without increasing long term debt
• Total write off of payments
• Payments of rentals with pre-tax dollars
• Longer terms
• Easier budgeting
• Smaller payments
• Saving through volume purchases
• Disposal of obsolete equipment
• Simplified bookkeeping
• Conservations of valuable bank lines
• Avoidance of dilution of equity

PROFITS ARE MADE BY USE OF EQUIPMENT – NOT OWNERSHIP

Equipment generates no greater profit by ownership. Use and employ your cash were it will help generate further profit. Make you equipment pay for itself through LEASING.

Keep your bank lines and cash available for opportunities or emergencies. Use leasing for equipment acquisitions.

Why do some businesses survive tight money markets, slow pay periods, depressions and emergencies? Because they are liquid; they have the cash to weather the storm.

Why do some businesses have the ability to take advantage of an opportunity to further their business or make an extra profit? They are liquid; the have the cash to make the deal.

Some of the typical questions asked about leasing by the prospective lessee:

Q.  How long will the term of the lease be?
A.  This is one of the negotiable factors that the Lessee can use in his favor through a specially tailored lease package designed to meet his own particular needs. However, a general rule of thumb is the term should be somewhat shorter than the equipment’s useful life – normally one to seven years.

Q.  Who selects the equipment?
A.   You do. We will arrange the acquisitor of the equipment to your specification, if you wish, from a specific supplier. We can, in most cases, save you money through our volume purchase capacities.

Q.  What about warranties on the equipment?
A.   All guarantees and warranties are assigned to you, the Lessee.

Q.  What about insurance?
A.   Insurance to cover the potential loss of the equipment can be supplied by either the Lessee or the Lessor. Again, this is one of the variables that can be used beneficially by the Lessee.

Q.  What happens at the end of Lease?
A.   As we stated earlier, one of the benefits to leasing is its flexibility over conventional financing. Each lease can be specially tailored to meet the Lessee’s needs. A few options available to them are:

• Renew the lease on a month to month basis.

• Trade in present equipment for new equipment and continue to lease.

• Return the equipment to Leasing Systems, Inc with no further obligation.

• Purchase the equipment at a pre-negotiated option price.

Q.  What does Leasing cost?
A.   The actual rental payments depend on the equipment you want and how long you want to pay for it. Leasing is not expensive. The savings in costs, your profits on higher yields, and the revenues realized on additional business handled will probably make the rental payments for you. Certainly you will not need to use your capital or borrow at the bank to obtain the new equipment you need today. A lease is a financial commitment by the leasing company for a period of years as a guaranteed charge that cannot be raised.

Leasing is a proven alternative to conventional financing on:

• automobiles
• trucks
• trailers
• aircraft
• computers
• office equipment
• furniture
• fixtures
• boats
• drilling machinery
• mining equipment
• agricultural machinery
• material handling equipment
• manufacturing equipment
• communications equipment
• construction machinery
• medical equipment
• dental equipment
• agricultural buildings
• industrial equipment

LEASING WORKS!

We invite you to contact Leasing Systems, Inc. to learn more about how leasing will work for you.