California First Leasing Corporation
Benefits of Leasing
Little (or no) Down Payment
With leasing, your initial cash outlay is generally limited to a deposit of one to three months of normal lease payments. Other financing sources often require a down payment of 10 or 20 percent. Leasing is an excellent choice for avoiding a large initial cash outlay.
Reduced Monthly Payments
Take advantage of lower monthly payments with an operating lease so you only pay for the equipment while you need it.
Better Cash Management
Payments are determined at a fixed amount, payable monthly, quarterly, semi-annually or annually. Once established, they remain at that amount, no matter what.
Conserve Operating Capital
Leasing keeps your other lines of credit open, helping to better manage your balance sheet. You don't tie up cash in property and you can avoid costly down payments.
- Leasing is flexible. A lease provides the use of equipment for specific periods of time at a fixed rental payment and allows you to be more flexible in managing your equipment.
- Flexible Payment Options. These options include scheduling payments at different intervals, on a step-up or step-down basis, matched with cash flow from earnings generated by the leased property, or around swap leases.
- Planned Replacement. A lease-financing package allows you to replace or upgrade property prior to the end of a lease. You're assured of having the most up-to-date property, which leads to higher operating efficiencies and added capacity for your operations.
- Leasing is cost-effective. Equipment may be expensive and some costs can be unexpected. When you lease, the risk of having to operate with potentially obsolete equipment is lower because you can upgrade or add property to meet your changing needs.
- Leasing allows you to stay on the cutting edge of technology. Business managers have learned that the primary benefits of higher productivity and profit come from using property, without owning it.
- Avoid technological obsolescence. Especially within the dynamic technology and communications department where new products emerge at lightning speed, leasing rather than buying capital assets can keep you up-to-date. By making the replacement process a breeze, you won't miss a step while keeping your company and your staff technologically savvy.
- Leasing also helps businesses make the right capital allocation choices by removing the pressures of cost from the decision-making process. When there's no room in the capital budget to buy an asset with cash, lease payments from the operating budget are an attractive alternative.