BENEFITS OF LEASING TO THE VENDOR

Increased Sales:
In today’s market place, equipment consumers are always looking for alternate ways to finance and support their business activities. Leasing is an alternative to utilizing business cash flows or working capital for equipment acquisitions. Offering alternative solutions to your clients give them the ability to acquire the equipment they need to grow their businesses. Allowing a client to “go elsewhere” for equipment finance gives them the open door to “shop around “ before making a commitment to you. Providing the necessary tools for equipment acquisitions will more readily ensure the sale.

Larger Sales:
Because leasing involves small monthly payments, not the full capital cost, up selling of additional equipment or add-ons become easier. This enhances your sales and your bottom line.

Increased Income:
Offering your equipment sales on a monthly payment plan will also alleviate the need to discount your equipment to be competitive. AFS also offers to their vendor partners incentive to utilize their leasing solution, which creates a revenue stream back to you.

Ease of Acquisition:
Typically arranging equipment finance can be done quickly and payment promptly thus ensuring no costly hold ups on customers equipment acquisitions.

Lease payments can be made flexible in order to ensure that the equipment acquisition falls within their allotted budgets for the year, allowing you to “create” an attractive option for your client and ensure the sale.

Conserve Working Capital:
Leasing allows a company to conserve its working capital, allowing it to allocate cash funds for other purposes such as growing the business. Sales tax and other taxes are not paid up front at the time the equipment is acquired through lease financing. They are remitted with the monthly payments over the term of the lease.

Budget Allocation:
Lease terms, payment streams and options can be individually tailored to meet the needs of your client’s budget restrictions. Skip leases, Step up leases and Step down leases are available to match a businesses seasonal or anticipated cash flows.

Hedge against Inflation:
When leasing equipment, your lease payment is fixed throughout the term of the leasing contract. This allows you not to worry about rate fluctuations since your payment cannot be increased. It also allows for easy cash flow projections and takes the worry away from an inflationary economy.

Preserves Lines of Credit:
Why use your existing line of credit for equipment purchases when, in today's economy, research and development are the turning point of a company's success? Use your lines of credit to stay in the mainstream of industry and allow leasing to be your purchasing tool for both fixed and tangible assets.

Establishes Credit:
Establishing one's credit is an important asset in today's business world. Allow leasing to be a reference tool for your commercial credit inquiries. As your leasing contracts are reimbursed, your credit horizons become increased thus expanding your borrowing potential.

Seasonal Fluctuations:
Some industries are seasonal by nature, and structuring a lease can be quite beneficial. Monthly, quarterly, semi-annual as well as annual lease payments are offered to commercial entities who might require such for cash flow requirements.

Tax Deductible:
Lease payments are generally tax deductible in most industries. While buyback options play a part in this particular benefit, please note that your accountant will be able to confirm such possibilities.

Let a leasing specialist at Affiliated Financial Services Inc. help you in discovering the many benefits of leasing today.