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Ten Advantages in Leasing: 1. Saves Cash
- no money "down".
2. Usually longer term available, resulting in lower
monthly payments.
3. Fast and convenient -
less hassle for long term "borrowing".
4. Tax benefits, such as
faster write-off; more rapid amortization than with "depreciation".
5. Provides cost-cutting or profit making equipment to be installed
immediately.
6. Pays for equipment out of before-tax savings rather than after-tax
profits.
7. Leverage - leaves bank
lines of credit undisturbed.
8. Avoids alternate corporate minimum tax.
9. May increase the teams ability to acquire funds, plus does not
dilute ownership.
10. Creates or maintains working capital for inventory, accounts
receivable, other expenses.
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