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To buy business equipment. Businesses will often have the need to purchase, replace, repair, or upgrade various kinds of equipment to process, manufacture, or produce their product. ... Often you have the choice to either purchase new equipment outright or lease or Re- Finance. Machine Loans help you buy new or used machinery without collaterals in an easy and simple way. You can purchase machines like VMC, CNC, blow molding, injection molding, embroidery machines, printing and wood cutting machines through this loan.
Salient features/benefits of equipment lease are submitted below :
1.) Tax Benefits: In order to minimize the tax liability of the company, Leasing is best option as the total lease rentals are expensed off from the Profit & Loss A/c of the company which helps to minimize the tax liability of the company.
2.) Off Balance Sheet Nature: The Company does not have to capitalize the assets and the corresponding liability in their Books so the Balance Sheet remains unimpaired keeping the Debt Equity ratio intact.
3.) Additional Source of Finance: Leasing facilitates the acquisition of assets without the necessary capital outlay and thus, has a competitive advantage of mobilizing the scarce financial resources of the business enterprise. Companies who have exhausted their limits with banks and other institution also look for leasing as an option.
4.) Flexibility: The lease financing can be upto 100 percent and the lease rental can be structured to accommodate the operational cash flow pattern of the lessee.
5.) Ownership: Option to return / extend / buy back the equipment at mutually agreed terms and conditions for Finance and Operating lease arrangement.