Can I get an on-line application for my website?
Yes! Cembrus Capital can set up the same on-line application technology for your web site and include a leasing calculator which may also determine promotions, terms and payments for your customers.
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Why should I lease my business equipment?
Among the many answers to this question, by far the best reason is capital preservation. Often the entire purchase amount can be financed through leasing, leaving your cash position unaffected.
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Are there any tax advantages to leasing?
Yes! Lease payments, that are structured properly, are normally 100% tax deductible as business expenses. Keep in mind that business expenses, such as lease payments, are paid from pre-tax earnings...not after-tax profits. Of course, you will want to consult your tax advisor for a final determination.
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Can I save money by leasing?
When you lease, your cash is retained for other business purposes. And, leased equipment is expensed over a fixed period of time. This allows for replacement before obsolescence, so devaluation is either avoided or minimized resulting in substantial cash savings.
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How will a lease affect my credit?
Leasing actually protects your line(s) of credit or borrowing ability. Leasing preserves your funds for other business requirements or opportunities.
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Does my lease payment increase with time?
Unless structured otherwise, your payment, for the term of the lease, is a fixed amount. Payments are not affected by market conditions or interest rate fluctuations. Unlike a bank loan, a lease cannot be "called in" early. Fixed lease payments also protect against inflation.
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What happens at the end of the lease?
You have two options at the end of the lease. One of the most common is to simply return the equipment to the Lessor...no further obligation on your part. The other option is to purchase the equipment at a pre-negotiated or pre-determined price. It's that simple.
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What determines the interest rate on my lease?
This is a lease, not a loan. Therefore, there is no interest rate. It is a fair market value rental.
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What about equipment replacement?
Since leased equipment is expensed over a fixed period of time, it is more easily replaced before obsolescence. Leasing is the best value for your equipment.
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How will a lease affect my bookkeeping?
Lease payments are listed as expenses on your P & L. They are not shown as an asset or liability on your balance sheet. So, bottom line, there is no change in the way your bookkeeping is done.
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What kinds of equipment can be leased?
Cembrus Capital will lease new and used equipment. There are some items/equipment that cannot be leased, in which case we can assist with our Working Capital program. You would be surprised at some of the equipment we have leased. Don't be afraid to ask the question.
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