April’s Business Essentials Program partner is First Financial Corporate Services, an equipment financing organization with exceptional lease rates to help AZTC members get the best leasing rates and flexibility on IT equipment, manufacturing equipment, material handling equipment, and medical equipment. This post is written by First Financial Corporate Services’ Senior Vice President of Business Development, Todd Bankofier.

As this is the third week of our blog series regarding equipment leasing, I wanted to give you the Top Ten reasons why someone makes a decision to lease equipment versus purchasing. I get asked this question a lot, so here is my answer in writing.

1. Lower cost method for acquiring assets. The residual value a lessor takes in the equipment during an operating lease can make leasing a low cost alternative to buying equipment.

2. Purchasing Power. Equipment lease financing allows the lessee to acquire more and/or higher-end equipment.

3. Balance Sheet Management. Certain types of leases help the lessee better manage the balance sheet and improve the overall financial picture, by conserving operating capital and freeing up working capital and bank credit lines for inventory, expansion and emergencies.

4. 100 Percent Financing. With equipment leasing, there is no down payment. The term of the lease can be matched with the useful life of the equipment.

5. Asset Management. A lease provides the use of equipment for specific periods of time at fixed payments. It assumes and manages the risks of equipment ownership. At the end of the lease, the lessor disposes of the equipment.

6. Service Additions. Many lessees choose to structure their leases to include installation, maintenance and other services, if needed.

7. Tax Treatment. Leasing offers the option of deducting 100 percent of the lease payment as a business expense.

8. Upgraded Technology. Leasing provides companies with the ability to keep pace with technology. The lessee can upgrade or add equipment to meet ever-changing needs.

9. Specialized Assistance. Lessors are specialists in equipment leasing and financing, and understand capital equipment markets.

10. Flexibility. There are a variety of leasing products available, allowing the lessee to customize a program to address needs and requirements – cash flow, budget, transaction structure, cyclical fluctuations, etc.

First Financial Corporate Leasing works with a wide range of companies to structure leases that make sense for each circumstance. We take true risk in the lease through residual value and this makes leasing with First Financial a very viable and cost efficient method of obtaining much needed technology.

April’s Business Essentials Program partner is First Financial Corporate Services, an equipment financing organization with exceptional lease rates to help AZTC members get the best leasing rates and flexibility on IT equipment, manufacturing equipment, material handling equipment, and medical equipment. This post is written by First Financial Corporate Services’ Senior Vice President of Business Development, Todd Bankofier.

In last week’s blog I talked about U.S. technology orders growing almost 13% year over year in January and February. One of the reasons for this spike is that companies held on to technology for longer than usual in this economy. Imagine that: with optimism of a revived economy comes the need to retool technology and take advantage of technological advancements that increase productivity and profit margins.

Equipment leasing plays a big role in this refresh strategy. American businesses, non-profits and governments invest over $1.2 trillion in capital goods each year. Some 51% or $628 Billion is financed through loans, leases, and other financial instruments. Leasing companies like ours – First Financial Corporate Leasing – are a great resource for financing, but play additional roles as well:

1) We can help remove and sometimes bring economic value to currently installed equipment… offsetting the cost of new technology.

2) We help structure leases that fit current budget constraints including eliminating current book value for obsolete, depreciating assets.

3) Unlike banks and manufacturers leasing companies, independent leasing companies like First Financial make sure our clients buy technology at the best market prices. We have a vested interest in making sure our clients do not overpay for technology.

4) Independent leasing companies like First Financial can also provide more flexibility than banks and manufacturer leasing companies. After all, we are in the business of reselling or disposing of the technology when the lease life expires.

If your equipment has hit the end of the road and no longer can be depreciated or properly maintained, keep in mind the notion of leasing. It will put your company back in a competitive mode and will preserve precious cash to grow your company.