Benefits of Leasing
Leasing is a great tool that can help your company conserve and control its cash with typically lower payments and zero to little down payment. Acquiring funding for business expansion, staffing, and other operational expenses requires solid credit, and an open credit line allows you to respond quickly as your business needs change.
|Down Payment||Typically 20%||Little or no down payment|
|Financing||Up to 80% after down payment||Up to 100% with little
or no down
|Monthly Payments||Standard monthly payments typical of a loan||May be lower than monthly loan payments|
|Tax Savings||Cost may be deductible in the first year only and up to a limit determined by the IRS|
Depreciation may be tax deductible
Payment, depreciation and even interest may be tax deductible depending on the type of lease
May lower your taxable income
|Interest Savings||—||May offer a lower after-tax cost
|Options at Term's End||You own the equipment, |
you keep it
|Return equipment to avoid obsolescence, purchase the equipment, or continue leasing the equipment.
(Available options depends on the type of lease.)
Types of Leases
Choice offers several different types of leases, here are 3 of the most common. Our leasing experts will work with you to find the right solution to fit your business needs.Talk to a Leasing Expert
A lease of equipment which represents ownership and is reflected on the company’s balance sheet as an asset. A capital lease, in contrast to an operating lease, is treated as a purchase from the standpoint of the person who is leasing and as a loan from the standpoint of the person who is offering the lease, for accounting purposes. These leases usually end with $1.00 buy or 10% of the original equipment price.
Tax (True) Lease
A multi-year lease arrangement in which the risks and rewards of ownership are retained by the owner (the lessor) of the leased asset or property, whereas the lessee retains its possession and use for the lease period. The lessor claims the depreciation benefits and the lessee claims the lease payments as capital expense.
A tax-exempt lease mirrors an installment contract and is reserved for mostly governmental agencies or similar entities. Consult your tax adviser to determine potential tax benefits.
Why Lease with Choice?
Local Decision Making and Local Service
All decisions are made right here in our local market by individuals who know and live in our community. All lease customers are serviced out of our Grand Forks location, providing you with our #PeopleFirst philosophy.
Fast Turnaround Times
Local decision making means your request doesn’t have to travel from location to location for review. This means a shorter wait time for you.
What can you lease?
Industrial truck and trailers
Office Equipment (desk systems, phone systems, point of sale equipment)
Golf Course Equipment
*Choice Leasing recommends that you consult with your Certified Public Accountant or Tax Consultant before entering into a lease contract.