Things to Consider Before Leasing Equipment

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• New equipment can represent significant costs and
  significant opportunities because equipment can
  offer increased capacity, efficiency, and new
  lines of business. It is important that a company
  carefully considers the differences in leasing
  versus buying. The answer, of course, will vary
  based on a number of factors unique to the
  company.

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• There are substantial tax differences in leasing
  versus buying. Most lease payments are counted as
  an expense and therefore reduce your tax burden.
  This is something to keep in mind when
  calculating the actual cost of the lease. On the
  contrary, with buying, there are depreciation
  deductions depending on the cost and type of
  equipment.

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• Depending on the viability of the equipment in
  question, leasing may be the best option. Its
  possible that the equipment will be significantly
  improved in five years or even obsolete. In such
  cases, leasing is ideal. If the equipment is
  unlikely to improve much in the near future,
  buying may be the best option because you will
  continue to get value from the equipment after
  its paid off.

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• A lease may be the best option when considering
  the list of other things that money must be spent
  on. When money will ultimately need to be tied up
  elsewhere, leasing provides lower upfront costs,
  which frees up capital. Everything should be
  considered, including HR and marketing
  promotions, as well as other equipment.

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• Often, there are lease contracts for the purchase
  of equipment at the end of the agreement. This
  should be determined upfront so its clear if a
  buyout clause needs to be in the lease agreement.

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• Leasing usually includes costs for delivery,
  installation, and other deferred costs. Even
  though leasing is a monthly cost, it usually
  provides lower monthly costs than other options.
  You can analyze the costs of a lease versus a
  purchase through a discounted cash flow analysis.
  Assumptions about the economic life of the
  equipment, salvage value, and depreciation must
  be calculated into the analysis.

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• Who are you collaborating with?
• How long has the company been in business?
• Do you understand all terms and conditions of the
  lease from start to end?

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• Is casualty insurance included?
• Who pays the personal property tax?
• Are there options to upgrade and trade in
  equipment before the lease expires?
• Is maintenance included?

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• Nations Equipment Finance was founded in
  September 2010 by former GE Capital equipment
  finance professionals who have originated and
  managed multi-billion dollar portfolios of
  equipment lease and term loan investments across
  various industries and collateral types. We have
  significant committed capital available to invest
  in equipment lease and loan transactions. At NEF,
  we are committed to identifying your specific
  financing needs and delivering a customized
  solution.
• We strive to build solid relationships
• with customers and support them,
• both now and in the future.
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Website http//www.nationsequipmentfinance.com
Email info_at_nationsequipmentfinance.com
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Summary

• There are many benefits to leasing equipment.
  Benefits include maximizing on tax advantages,
  keeping pace with emerging technology, evaluating
  whether the equipment fits your needs, and
  reducing costs.