Cash Flow
Financing allows your business to conserve working capital and keep bank lines of credit open and available.
Convenience and Speed
An equipment lease or financing facility can be processed and closed in less time than traditional financing with the approval process as few as 5 minutes.
Conservation of Capital
Equipment financing does not require a business to outlay cash to acquire the asset. Liquid assets remain available for other working capital needs that have higher return on equity (ROE) and ROE metrics.
Tax Advantages
A lease can be structured either on or off balance sheet, depending on the accounting objectives of the business. Customers should consult with their tax advisors to determine tax advantages which may be available to your business. Xtreme Financial Services never gives tax advice.
Accounting Considerations
Off balance sheet financing, improved reporting of earnings, and increased return on assets are some of the options of which a business can take advantage with a finance product.
Equipment Life-Cycle Management
Equipment financing permits regular upgrades to reduce obsolescence risk with the equipment life-cycle management.
Improved Return on Assets
An operating lease can have a positive impact on both Return on Assets (ROA) and Return on Equity (ROE), which is especially attractive for companies that place a heavy emphasis on these to evaluate effectiveness and profitability. This can also be true for companies that use Economic Value Added (EVA) as the basis to rate performance.
Purchasing Power
Financing allows a business to acquire more equipment by using leverage.
Customized Solutions
Flexible payment options allow a business to more easily meet their objectives.
Cash Forecasting
Having predetermined payments allows a business to prepare accurate budgets and forecasts.
Inflation Advantages
A business that pays cash for equipment today will pay with today's dollar value. When a business utilizes financing, they will be paying with future, inflation adjusted earnings.