eSapp Consulting LLC - Benefits of Leasing

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Benefits of Leasing

80% of companies in the United States lease part of their equipment.

A lease is a contract to obtain the use of equipment or services for a pre-agreed period of time. Leasing is one of the best ways to grow your business while conserving cash outlay. Proper debt financing can dramatically improve your balance sheet and cash flow.

eSapp Consulting can design and obtain long-term financing through leases for any of your business goals. Leasing offers a variety of benefits:

Improved Terms & Conditions - eSapp Consulting will look nationwide for the bank or financial institution with the best rates and most favorable terms to match your specific needs.

Conserves Capital - Leasing frees up funds to invest in areas that produce income--such as people, inventory, or marketing--rather than depreciating equipment. Our down payments or equity injections vary from zero to one payment or more. Down payments vary with the type of equipment financed and the credit of the customer. Many times we can lease 100% of your needs.

Provides Source of Credit - There is no negative impact on existing bank lines. Leasing provides a new source of credit that has little negative effect on your balance sheet. In addition, your lease can include any "soft" costs, such as maintenance, installation, training and shipping.

Fits Budget - Lease payments can be constructed to meet your seasonal needs. Payments can be structured on an annual, semi-annual, or quarterly basis.

Off Balance Sheet Financing - Lease payments are generally treated as an expense; as such, they do not increase company debt.

Obsolescence Protection - Your equipment is paid for as it produces. Leasing avoids the risk of owning equipment that is no longer technologically valuable.

Saves Taxes - Many leases can be fully expensed, depending on your tax situation. This allows you a dollar-for-dollar write-off of the lease rental payment.

Higher Cash Reserves - Low monthly payments free up cash, allowing you to reserve it or allocate it to other areas of your business.

Fixed Monthly Payments - Regular lease payments allow for more accurate planning of your budget. Leasing usually results in lower payments, resulting in better cash flow for your business.

Easy Add-On - Most leases allow for additional equipment to be added on to the lease or traded up for a newer model with minimal documentation.

Cash drives your business, so conserve it by leasing with eSapp Consulting!

Types of Leases

• $1.00 Out: This option allows you full ownership of the equipment at the end of the lease term.
• 10% Put: A more popular option that allows you to structure a slightly lower monthly payment by moving 10% of the original value to the end of the lease. This is not an additional charge. At the end of your lease term you can purchase the equipment for the residual amount. The originating lender often finances this balloon amount.
• Fair Market Value (FMV): Offers the lowest monthly payment. At the end of the lease term, you can purchase the equipment at the then fair market value of the equipment.