Screen Printing Equipment Leasing
Securing the right type of financing will probably be the most important step in starting your business. The wrong type of loan or lease could not only put you in business, but, also could force you out of business.
Some things to look at carefully are, variable rate loans, short term renewal dates, large balloon payments, restrictions on expansions or additional borrowings.
Start-up businesses are mostly successful if the borrower knows what direction they are going. You need to know how to secure financing, market your products, and manage your business.
Leasing is one of the oldest services in the world. Leasing originated over 4,000 years ago and has developed into a multi-billion dollar industry today.
The U.S Department of Commerce estimates that in the year 2001, $200 billion worth of equipment will be acquired utilizing leasing as the method of financing. In fact, 80% of companies today lease some or all of their equipment and nearly 40% of all the equipment is acquired utilizing leasing
Advantages of Leasing Include:
Maximizes cash flow
Maximization of cash flow is achieved in leasing because it does not require a burdensome down payment that consumes precious cash flow. Thus, your business is better able to serve your customer, as well as being more profitable!
Who wants to pay anymore taxes than necessary? Monthly lease payments may be fully deductable as an operating expense for income tax purposes. Only the interest portion of a bank loan and depreciation are tax deductable. If you want to pay less income tax next year, talk to one of our staff about the possible tax benefits of leasing. No down payment on equipment purchases.
When applying for a loan at a bank, you will be asked for a significant down payment upon purchase. That down payment represents a large sum of money that will not be available for the day to day operations of your business. Ask us today about "No Money Down" leasing!
It is easy to get started. We only need a simple credit application to approve you for a credit line up to $75,000. In most application only cases, you can receive a credit decision in 4-6 business hours.
Affords more money for working capital
Leasing does not tie up your money and allows your business to operate the way it is supposed to. If managing your cash flow is important to your business, then leasing is the way to go.
Provides an additional source of credit
Leasing offers an additional source of funds when all other lines of conventional credit are exhausted. Many of our clients utilize their bank for land, building, inventory and accounts receivable; therefore, leasing is the optimal choice for the aqusition of capital equipment.
Hedges against inflation with a fixed payment schedule
Interest rates are not going to be this low forever. Leasing ensures that you can take advantage of the "cheap money." The fixed payments are helpful when making budget projections compared to variable rate loans.
Protects against operating old obsolete equipment
When leasing, you are paying for the use of the machinery, not for the machine itself. With that in mind, you are not tied to an old, inefficient dinosaur of a machine because you own it. Leasing promotes the integration of technology, as well as increased efficiency.
Able to provide 100% financing for equipment acquisitions
You will find that we want to make your next equipment acquisition as easy as possible. We will not only finance the equipment, we will finance the installation and training. Call us for more information.
Provides flexibility for budgeting
Determined to meet your individual needs and tailoring a lease to meet your unique situation.
To learn more about these benefits, contact one of our sales staff so they can assist you to increase your businesses productivity and bottom line.
Typically 3 types of leases are offered for this industry.
1. 10% or Fair Market Value Purchase Option (whichever is greater).
This means, at the end of your lease, you have the right to purchase the equipment for 10% of the original purchase price or fair market value whichever is greater. This is considered a true operating lease allowing a 100% business write off over the term of the lease period.
This equipment historically is worth at lease 50% of the original cost after 5 years. Your liability at lease end could be half of the original cost. Example: $35,000.00 cost, 50% fair market value, your buy-out could be as much as $17,500.00
2. 10% Purchase Option Lease
Easily the most popular of all equipment leases. When your lease period has expired, you can purchase the equipment for 10% of the original cost. Example: $35,000.00 purchase price, 10% buy out is $3,500.00 (not available in all states). Consult your CPA for the tax benefits.
3. $1.00 Purchase Option
IRS views this lease as a conditional sales contract. You have the option to purchase the equipment for $1.00 at the end of the lease period. Normally, this payment is much higher than a 10% or fair market option lease (this lease is not offered in all states). Tax benefits are much less than the other leases.
All of the leases we have described have terms from 12 months to 60 months. Start-up businesses sometimes require a 10% or 20% down payment. Existing or start-up businesses require the first and last payments in advance.
Ryan Screen Systems provides quality screen printing equipment and screen printing supplies to the beginner and professional alike. Our products have a history of being easy to use, safe for the environment, and pocket book friendly. We have over 14,000 items, ready to ship, when you place the order.
Orders can be placed over the phone(800-769-9130), or over the web www.ryanrss.com
Our technical help line is available by calling 800-769-9130
Lease Form provided by Geneva Capital LLC