Key points to consider when choosing equipment leasing :
Companies lease for a variety of reasons: leasing offers a valuable financing package that allows companies to maximize their purchasing power; leasing is often the least expensive financing method when all the benefits are factored in; and leasing equipment transfers the risk of technological obsolescence from the lessee to the lessor.
Traditionally, leasing has always positively impacted companies by growing their business without incurring a tremendous amount of cost. They conserve working capital (Cash) and preserve bank lines of credit which allow them to invest further in their business.
Today, in the “Renewable Energy Industry”, same principals hold true, however, with even greater advantages. For instance, renewable energy tax incentives and credits. Although many of these have been created as a means of stimulating the development of alternative sources of energy, adversely, they may only last for a period of days, months, or years as their intention is to phase out as time passes and the energy becomes more self-sustaining. Leasing on the other hand has a long-term lasting effect with tax advantages and numerous benefits with the assurance of project and/or equipment affordability when you need it most without a large expenditure of capital.
There is a major emphasis to promote “green”. As time passes, long after these incentives phase out and renewable energy does become more self-sustaining, your decision to go “green” will have been a conscious one…and having reduced your carbon footprint in the process will leave you with a lasting feeling of having made a good decision.
“Leasing as the Preferred Choice”, is all about making the right decisions…making informed decisions. Every company must consider different options for procuring equipment based on their business model and business environment. Listed below are some key points to consider when choosing equipment leasing as a strategic means to fulfilling your business needs.
Why do they prefer to lease their equipment and systems?
A variety of companies follow an Economic Value Add (EVA) model – a financial measure that determines whether an investment will return more than the cost of capital, and if it will do so over time. The EVA process usually points to leasing as the preferred method for equipment acquisition because it enables them to capitalize their costs over the life of the project.
Leasing enables companies to replace or upgrade its equipment easily as your business needs change. For example, at the end of the lease term you may decide whether to purchase the equipment, extend the lease, or simply upgrade your equipment to a newer model which may offer more features with current technology.
On a broader business issue such as re-evaluating your business plan, “Leasing almost forces you to take a closer look at your company’s operations on a regular basis to ensure that you have the right equipment and capabilities in place to meet your current and future needs and objectives”.
Leasing equipment as a financing option may also afford a company the ability to leverage their capital, increase cash flow and maintain more funds for business expenditures. Renewable Energy Equipment Leasing has customized programs for companies of this profile which has allowed them to meet both their financial and equipment needs.
Please visit our Products and Services, Lease Financing Options, and Equipment Leasing Benefits for more information.
For more information on our Consumer Financing (Residential), please contact our team of knowledgeable finance specialists by phone or e-mail at credit @ thinkreelgreen.com. We welcome the opportunity to help answer any questions or concerns you may have.