Why lease with Omni Containment?
Small businesses have to be smart with their capital, especially in the KEC industry, because one of the biggest expenses that a business has can be obtaining the equipment it needs to reach its full potential. Purchasing equipment upfront can be expensive, while getting financing can often time be a challenge. However if you want to get the maximum ROI from your company then you need to invest in your company!
What makes leasing equipment attractive?
With leasing your equipment you can get tax benefits and you might be able to pay lower monthly payments than you would with a purchase loan. When the lease is over, you either return the equipment to the seller, or make whatever payment is necessary under the lease terms. May people prefer leases because it’s simpler to get regular upgrades to new equipment. When the lease ends you can return the old equipment and get the newest model while maintain similar fixed costs. Then you can avoid the hassle of having to sell the equipment on your own and the pricing on the lease takes into account anticipated residual value at the end of the term.
What are some other benefits?
- Much Faster Turnaround Time: local banks can take 2-6 weeks to offer an approval and require a full financial disclosure.
- Local Banks: often require a large down payment.
- Local Banks: often place a blanket lien on the entire business.
- Local Banks: often do not report positive business credit.
- Faster Decision: Typically you will get a credit decision within 24 hours
- Multiple Options: You will get notice of approval and OPTIONS for program terms and you can decide what option best meets your budget.
- Easy Forms: You can complete closing docs electronically or by PDF.
- Fixed Payments: Unlike loans and credit cards, your lease payment is fixed throughout the term. It will not vary with interest rate changes. Fixed monthly payments make your equipment purchase more affordable without the upfront capital required for a cash sale.
- Preserved Credit Lines: Your monthly lease payment does not affect your bank or credit lines. Most banks and credit card companies will reduce your existing available credit lines with every purchase via a credit card or loan.
- Affordable Down Payment: LCA does not require a large upfront down payment like loans and credit card companies. Most of our programs only require first and last payments (typically 5%) in advance instead of the 20% mandated by bank loans.
- Adding ‘Soft Costs’: Leasing allows you to roll in services (software, maintenance, etc.) with the equipment so the monthly payment includes your total price. Loans and credit cards do not traditionally combine services and equipment costs into one monthly payment.
- Avoiding Equipment Obsolescence: Leasing makes adding onto existing equipment or upgrading to new equipment efficient and available at any time for our customers. You can upgrade your equipment as technology and your company’s needs change.
- Reduces Taxes: Unlike loan payments, lease payments may be deductible. Please consult your tax advisor to determine the deductibility of lease payments.
Equipment Tax Deduction Sees Dramatic Changes!
Deduction limit jumps to $1,000,000 and equipment purchase limit is now $2,500,000. Bonus Depreciation is now 100% deductible on most new & used equipment and is retroactive to 9/27/2017!*
| Example cost of equipment | $100,000 | $600,000 |
$1,200,000
|
| Section 179 deduction | $100,000 | $600,000 |
$1,000,000
|
| 100% year-one bonus depreciation | $0 | $0 |
$200,000
|
| Total 1st year deduction | $100,000 | $600,000 |
$1,200,000
|
Cash savings on purchase
|
$21,000 | $126,000 |
$252,000
|
| Lowered cost of equipment | $79,000 | $474,000 | $948,000 |
| Savings with IRS Section 179 deduction | 21% | 21% | 21% |
Visit leasecorp.com/179-tax-deduction for more information
Lease Corporation of America is not an authorized tax advisor. You must consult your tax advisor, visit www.irs.gov or contact the IRS helpline at 800.829.4933 to confirm if you qualify for this tax benefit.