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Network Equipment Leasing
\Why Customers Lease

Fair Market Value Advantages

What is Fair Market Value?

Benefits of Leasing

  Why Customers Lease

Leasing is Affordable

Leasing allows the customer to afford an equipment investment without a single, lump-sum expenditure. This means a sale can be made to customers who couldn't normally afford the cash sale price of the equipment, or who are at the end of their budget cycle.

An Operating Lease allows the customer to deduct the monthly lease payment as an operating expense, lowering the effective after-tax payment.

Leasing has Financial Advantages
Leasing offers off-balance sheet financing and improves customer balance sheet appearance.

Leasing helps Cash Flow.
Leasing more effectively matches incoming and outgoing cash flows for the customer --improving overall business operation.

Leasing Frees Capital.
By improving cash flow with leasing, customers may use capital on hiring, R&D, expansion and other mission-critical business needs.

Leasing Eliminates Obsolescence Worries.
With Fair Market Value leases, customers have greater flexibility to trade-in, upgrade, or change the equipment to meet their needs.

Leasing Eliminates Financial Restrictions.
t is not uncommon for bank loan agreements to fund only a portion of the equipment cost or require substantial down payments. Many loan agreements also contain restrictions requiring the customer to get the lender's permission before acquiring additional equipment or borrowing more money. Leasing rarely requires down payments and doesn't restrict future acquisitions.

Leasing Makes Financial Reporting Easy.
Lease payments are little more than a line-item in the customer's monthly cost of operations. Leasing eliminates the hassle of depreciation schedules and accounting for equipment disposals.
  Fair Market Advantages

Fair Market Value (FMV) leases provide protection from obsolescence and inflation, persuading prospects to acquire equipment now. FMV leases are preferred by customers for their cash flow and tax advantages. FMV leases provide the lowest lease rates, which means the lowest monthly payment for the customer.

Companies choose Fair Market Value (FMV) leases over Finance lease for the following advantages:
  • Lowest monthly payment maximizes spending power
  • Credit Requirements are lower than for finance leases
  • Provides protection from obsolescence and inflation
  • In most cases, operating leases do not have to be reported on the balance sheet
  • Tax Benefits - Payments are often considered a business expense and may be fully deducted
  • Greatest lease-end flexibility
  • Continue to lease the equipment at a lower monthly payment
  • Upgrade to the latest technology
  • Purchase the equipment at the FMV
  • Return the equipment with no further obligation
What is Fair Market Value?
Fair Market Value--the dollar amount the equipment can be sold for--is calculated at the end of a lease term. Since market conditions and technology are very dynamic, predicting the FMV of any piece of equipment isn't possible until the end of the lease term.
  Benefits of Leasing

Companies who establish leasing programs to increase business realize tangible benefits immediately. Proven sales techniques start with a leasing approach, resulting in more sales, incremental sales, and higher sale prices. Leasing allows you to sell to customers with limited capital budgets, or to those who are at the end of their fiscal year. And, manufacturer-sponsored leasing is viewed by customers as the best source for leasing. True one-stop shopping lessens the likelihood your prospects will look elsewhere.
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