About SPARTAN EAGLE LEASING
Quality Assets
While leasing an equipment asset, the ownership of the asset still lies with the lessor whereas the lessee pays the rental expense. Given this agreement, it becomes plausible for a business to invest in good quality equipment assets which might look unaffordable or expensive otherwise. This allows the business to get the top of the line of one or more pieces of equipment, thereby increasing their production capacity, with the latest technology, and the extra money saved by not buying equipment can be used for the operations of these new higher capacity assets.
Better Use of Capital
If a company chooses to lease, rather than investing in an asset by purchasing, it releases capital for the business to fund its other capital needs or to save money for a different capital investment. Ownership and tax breaks may make buying business equipment appealing in some industries, but high initial costs and loss of the use of the cash may mean this option isn't for every industry.
Flexible Terms
Leases are usually easier to obtain and have more flexible terms than loans for buying equipment. This can be a significant advantage if you have bad credit or need to negotiate a different payment plan to lower your costs.
Better Planning
Lease expenses remain constant for the term of the lease life and typically will remain the same if the lease is renewed. This helps in planning expense or cash outflow when undertaking a budgeting exercise. In addition if budget constraints would normally not allow buying new equipment, a lease allows the company to do so in order to take advantage of market changes or other opportunities, they otherwise would miss.
Low Capital Expenditure
Leasing is an ideal option for a newly set-up business because it means lower initial cost and lower capital expenditure requirements.
Termination Rights
At the end of the leasing period, the lessee may return the equipment and terminate the leasing contract or renew the lease at typically the same terms and thus provide flexibility to the business.
Equipment Sale Lease Back (Sell Us Your Equipment)
n addition to the opportunity to acquire “new” equipment with leasing, there is the opportunity to sell “pre-owned” current used equipment and lease it back. Here, the company’s old equipment will be bought and then leased back to the company. Once again, releasing all the cash tied up in this depreciating asset to be used for generating an ROI with that cash. In addition, if the “old” equipment has been fully depreciated, and therefore the loss of the tax benefit, you now have a new tax benefit by writing off the lease payments.