|
WHY LEASE?
-
Makes high-cost equipment affordable - In today's hi-tech professional world, acquiring top quality equipment requires considerable
expense. Leasing eliminates this by establishing a structure of fixed payments over a short or long term (1-7 years) based
on your needs.
-
Allows the equipment to pay for itself - With a simple fixed monthly payment, a lease allows you to consider the equipment
as a contributing asset, therefore paying for equipment as it is being used.
-
Offers 100% financing - including "soft costs" -
Leasing is a Total Package Agreement! You can even
finance related "soft costs" such as software, delivery, installation, and freight.
-
Simplifies the loan process - Leasing is much simpler than a bank loan where the red tape can delay the application
and decision. Helps eliminate obsolescence, with today's advances in technology, most office and business equipment soon becomes
obsolete.
-
Conserves capital - Leasing can free capital that can be crucial for business and professionals when the need for increased inventory,
marketing/advertising initiatives and added personnel demand a constant and reliable cash flow.
-
Ease of approval - Sa-Ro Leasing INC. offers a quick and simple approval process. Plus, our friendly staff
will guide you and answer all your questions throughout the process.
PROGRAMS:
-
Capital Leases This is a lease that fails to qualify as an Operating Lease under GAAP guidelines; therefore
the asset and attendant liability are recorded on the lessee's balance sheet. The asset is depreciated as though it were acquired
with cash or financed via a loan. This structure is typically secured only by the asset on the lease schedule and can be structured
with a variety of payment structures and end of term purchase options.
-
Fixed Rate Term Financing This financial instrument is structured as a Note and Security Agreement, with a
fixed rate typically indexed to comparable term treasury notes at the inception of the transaction. The primary benefit to
this structure is that it is generally less restrictive than a traditional bank loan. The only security, typically, on the
note is the asset listed on the security agreement schedule.
-
Operating Leases This structure qualifies
as an Operating Lease under Generally Accepted Accounting Principles (GAAP) SFAS13 guidelines. Accounting benefits include
keeping the liability and asset off-balance sheet. This provides enhanced financial reporting by improving a company's financial
ratios. In some cases, this structure allows a company to remain within its bank covenants. The Operating Lease serves as
a "hedge against obsolescence" and is frequently used for high technology asset acquisitions.
-
Tax Leases This structure qualifies as an operating lease under Internal Revenue Code parameters. Qualifying
a tax lease is generally less objective than for a GAAP operating lease -- and focuses mainly on whichever party retains the
"benefits and burdens" of ownership. A qualifying Tax Lease allows the lessor to depreciate the asset and the lessee to treat
the payments as an expense for federal tax purposes. Benefits to this structure include potential reduction in Alternative
Minimum Tax (AMT) liability and possible lower rates due to the lessor taking the depreciation benefit.
-
Balloon Payment Structures This option provides a balloon or put payment at the end of a term note or lease.
This provides the client with a buy-out option that, in effect, provides a longer amortization period under the financing
instrument and therefore lower payments over the term of the financing.
-
Deferred Payment Options This option provides a 60, 90 or 120 payment deferral period typically at transaction
inception. This provides the client with the ability to ramp up the use or productivity of the underlying asset being financed
and match that productivity with a deferred payable.
-
Seasonal Payment Structures This option provides a payment structure that matches the client’s business
seasonality to the lease cash outflow. A very beneficial structure for seasonal industries such as construction and retail
oriented businesses.
-
Sale and Leaseback A sale and leaseback transaction provides your firm with increased cash flow and all the
benefits associated with the chosen lease structure. It is often utilized to generate value out of previously purchased assets.
Companies that have purchased large amounts of equipment over a previous six-month period or that own higher value collateral
(such as manufacturing equipment) purchased years earlier can qualify for a sale and leaseback transaction.
-
Start-Up Financing Financing for customers who have been in business less than 2 years and are seeking equipment
financing or construction & permanent financing.
|