Leasing - Apex Material Handling Corporation

Leasing conserves capital
- Capital is best used for income-producing investments, not necessarily equipment. When leasing the problem of equipment vs. capital is solved. Businesses get the equipment while capital stays where it belongs – working for the company
Leasing keeps equipment up to date
- Purchasing equipment is not only expensive but, overall usage may increase of equipment needs may change in a few years. Leasing provides the ability to upgrade to the most current equipment as these needs change.
Leasing protects other credit sources
- When leasing is used to acquire equipment, businesses are less dependant to other conventional credit lines, which can then be used on other income-producing activities or investments.
Leasing has tax advantages
- Within the Federal Tax reform act of 1986, treatment of certain “preference” items raises the possibility of the Alternative Minimum Tax (AMT). Leasing may provide a means to minimize of even negate the impact of the AMT.
Leasing simplifies equipment replacement
- With leasing, possession of and responsibility for the equipment is only for the lease term (unless the equipment is purchased at the end of the term). Leasing eliminates the need to sell of store the equipment at the end of its economic life cycle.
Leasing simplifies accounting
- Leasing offers off-balance sheet financial solutions. Accounting for a true lease agreement becomes little more than a matter of recording payments, thereby reducing accounting costs.
Leasing Provides 100% financing
- Leasing May include the entire equipment cost plus insurance and maintenance on the lease. Leasing often provides 100% financing, requiring only an advance rental payment, thus eliminating such lender requirements as a down payment or a compensating future operating expense.
Leasing provides a hedge against market fluctuations
- The lease signed today remains fixed in today’s dollar and at today’s rate. As a result businesses are better able to budget future operating costs.
Leasing offers unmatched flexibility
- Equipment may be acquired piece by piece, lease by lease or can be tied all together in a Master Lease. Leasing provides for the option to purchase, upgrade, return or extend and equipment lease at the end of the term.