Medical Equipment Leasing FAQs
- Conserve Capital - Most leases require little outlay of cash and allow working capital to be alloted for unexpected expenses.
- Fixed Rates - Your payments stay fixed allowing for easy budget planning.
- Tax Advantage - Leasing offers the possibility of tax deductions as operating expenses as opposed to depreciating capital cost allowances.
- Credit Stability - Leasing preserves bank lines of credit for short-term borrowing and, in fact, broadens the total pool of available capital.
- Improves the Debt/Equity Ratio - Many lease payments can be considered an operating expense in the current year. Therefore the entire indebtedness does not appear as a liability.
- Simplifies Bookkeeping - Lease payments can be easily allocated to the proper departments. Leasing eliminates sizable depreciating schedules, capital account ledgers and other internal equipment controls.
- Overcomes Budget Limitations - Leasing simplifies budgetary cost controls. Known equipment costs are an advantage in establishing departmental, divisional or subsidiary budgets.