Leasing is flexible
Companies have different needs and different cash flows. Start-up companies typically are characterized by little cash and limited debt lines. Mature companies might have other needs: to keep debt lines free and to avoid committing to equipment that may quickly become obsolete. Leasing provides the use of the robotic system for specific periods of time at fixed rental payments. Therefore, leasing allows you to be more flexible in the management of your equipment.

Leasing is practical
By leasing, you transfer the uncertainties and risks of equipment ownership to the lessor, which allows you to concentrate on using that robotic system as a part of your business.

Leasing is cost effective
Robotic systems are costly and some costs are unexpected. When you lease, your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to best meet your needs. Leasing allows you to stay on the cutting edge of robotic technology. Sophisticated business managers have learned that the primary benefits of higher productivity and profit come from the use of equipment, not owning it.

Leasing has tax advantages
Rather than deal with depreciation schedules, you the lessee, simply make the lease payment and deduct it as a business expense.

Leasing helps conserve operating capital
Leasing keeps your lines of credit open. You don't tie up your cash in equity. Also, you avoid costly down payments. With other advantages such as off-balance sheet financing, leasing helps you better manage your balance sheet.

Who Leases?
Of all the ways to acquire equipment, leasing is the method most frequently used. Today, eight out of ten American companies lease some or all of their needed equipment.

How can leasing help my Financial picture?
You may ask why should I lease rather than take a bank loan? For one thing, leasing allows you to keep your bank lines of credit open. The Financial Accounting Standards Board (FASB) considers lease rental payments as an expense, not a debt, under many lease agreements. Another key advantage of leasing is that it permits 100 percent financing, and the term of the lease can be matched with the useful life of the robotic system from the AAA Industrial Robot Store.

* Source of information on leasing: NBD Leasing Inc.

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Last modified on Saturday, January 04, 1997