What is a lease?
A lease is an agreement by a customer (lessee) to pay a monthly ”rent” for a specific amount of time for the right to use property owned by a lessor.

What about financing through my bank?
Bank loans usually cover only the acquisition of tangible assets (i.e. hardware) and typically require a large down payment. Leasing generally does not affect bank lines of credit, which can be used for other business purposes.

Should I lease or buy?
For many businesses, the use of the equipment (not the ownership) provides the value.


The Benefits of Leasing

Speed – Leasing allows you to respond quickly as your need for equipment arises. You can be approved for a lease within hours through minimal documentation and you can have the products you need in operation quickly, with no hassles.

Conserves Capital - Growing, competitive companies need all the capital they can generate. With leasing, cash is not tied up in equipment equity. With no sizeable down payment and small fixed monthly lease payments, leasing allows you to reserve your capital for other day-to-day expenses.

Additional Source of Credit – A lease is not considered a long-term debt or liability. It does not appear as debt on your financial statement, making you more attractive to traditional lenders when you need them. Since leasing may not increase your debt, you may be increasing your borrowing capacity. Existing bank credit lines remain available for short-term needs, such as inventory peaks, trade discounts, rising operating costs, and unplanned expenses.

Expand your Budget – If your budget doesn’t provide for a substantial capital outlay, leasing’s affordable monthly payments can mean the difference between obtaining the equipment and productivity improvements now…or waiting for next year’s budget.

Tax Advantages – Leasing may allow you to write-off 100% of the monthly lease payment as an operating expense, depending on your end of lease options. The IRS does not consider an operating lease to be a purchase, but rather a tax-deductible overhead expense.

A lease may help an Alternative Minimum Tax taxpayer avoid additional minimum taxes, which would otherwise be due if the taxpayer owned the equipment.

Please consult your financial advisor for tax benefits applicable for your company.

Flexibility – Cash purchases, or bank financing lock you in while leasing enables you to upgrade during the lease term. As your business grows and your needs change, you can add to or upgrade your lease. You also have the option to include delivery, maintenance and other services, if needed. End of term lease options means you can choose to renew the lease, purchase the equipment, or return it to the lease company.

Asset Management – A lease provides the use of equipment for specific periods of time at fixed payments. Your company reaps the benefits of equipment usage while the leasing company assumes the risks involved in equipment ownership.

No More Obsolete Equipment - Leasing can position your operation at the forefront of technology. It allows you to upgrade equipment as needed and eliminate the risk of lost capital caused by lowered resell values or outdated equipment.


Frequently Asked Questions

How do I lease?
It is easy to lease through Powr-Flite! We have partnered with a leader in the leasing industry to provide quick, easy lease options for our customers. You simply complete the online leasing application and fax it to us, or call our leasing coordinator to have the application faxed or mailed to you. To make the process as easy as possible, we handle all of the initial contact with the leasing company. Once the lease is approved, usually within a few hours, we process and ship your order to you.

What is the minimum amount that can be leased?
For established companies in business for at least two years the minimum purchase amount is $1,000.
For start up companies the minimum purchase is $5,000.

What are the lease terms?
Lease terms range from 24 to 60 months depending on the amount of the lease. You can see the lease terms offered when you enter the amount you would like to lease on the handy lease calculator.

What is the “end of lease options?”

Fair Market Value – at the end of the lease you may purchase the equipment for the Fair Market Value, renew the lease, or return the equipment to the leasing company. A Fair Market Value purchase option lease is considered a “tax” lease that may offer substantial tax benefits. A Fair Market Value lease offers the lowest monthly payment. 

$1.00 Buy-Out Option – you may purchase the equipment for $1.00 at the end of the lease. This option is typically used as a “financing” option when you want to own the equipment when the lease period is over. The $1.00 Buy-Out option will increase the monthly payment as compared to a Fair Market Value lease.