Fencing Rentals

Fence Leases

The primary advantage of leasing Fence equipment is that it allows you to acquire assets with minimal initial expenditures. Because equipment leases rarely require a down payment, you can obtain the goods you need without significantly affecting your cash flow.

Leasing equipment is a great way to use the latest technology and guard against obsolescence. Operating lease: Terms for these leases can be from 1 to 5 years. These leases offer low monthly payments and can be converted to fair market purchases at any time.

Types of Leases:

Acquisition lease: Acquisition leases are available for customers who would like to finance equipment they wish to own. Terms for these leases are also from 1 to 5 years. The buyout for these leases can be a fixed residual determined at the beginning of the contract or a low as one dollar with higher monthly payments during the term.

Flexibility: Many companies will work with you to determine the best lease arrangement for your needs. They can design various features such as unique payment schedules, equipment add-on or upgrade options and master schedules.

Advantages of Leasing a Fence

The main advantages include:

Capital conservation

Leases in today's financial climate can often be obtained with little or even no money down. When borrowing to make a purchase, cash out-of-pocket is required for a down payment -- money that can be used for other important business needs such as marketing, employee salaries, research, etc.

Less Documentation

Leases usually require less financial documentation than bank loans, meaning they require less preparation and are easier to secure. Some banks want two to three years of detailed credit history, while leases often require only six months of history or less.

Low Down Payment

Because you can get into a lease with little or no down payment, it's likely that you can get more equipment or higher quality equipment than you can when buying outright or borrowing.

Low Maintenance Costs

Even new equipment can break down. Most leased equipment is maintained and often even repaired without charge. This can take a load off your mind and save you considerably in case of major repairs.

Tax Write-off

Another financial benefit of leasing equipment is that your lease payments can usually be deducted as business expenses on your tax return, reducing the net cost of your lease. - Easier Qualification. In addition, 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 longer payment plan to lower your costs.

New Technology/Obsolescence

If you use your lease to attain items that are subject to becoming technologically outdated in a short period of time, such as computers or other high-tech equipment, a lease passes the burden of obsolescence onto the lesser, as you are free to lease new, higher-end equipment after your lease expires.

Other Possible Leasing Terms:

Leasing does not impact your financial statements, so your borrowing potential (through traditional bank financing) is not reduced, as it would be if you borrowed to make a purchase. It will make your equity-to-debt ratio look better. Also, lease payments are usually considered "pre-tax" rather than "after-tax." This means that you can write off payments for tax purposes, whereas when borrowing you can usually write off only the interest paid. Consult with your accountant or financial adviser for all tax consequences of leasing.

When structuring a lease during times of rising interest rates, try to obtain fixed, monthly payments over the term of the lease. Not only will this protect you from inflation, it will also allow you to project future cash outlays with greater accuracy. Adjustable-rate leases and loans put you at the mercy of rising interest rates, whereas a fixed-rate lease will lock you into a specific interest rate.

Disadvantages of Leasing Fence Equipment

Leasing business equipment has two main disadvantages: overall cost and lack of ownership.

Another downside to leasing is that you are obligated to make payments for the entire lease period even if you stop using the equipment. Some leases give you the option to cancel the lease if your business changes directions and the equipment you leased is no longer necessary, but large early termination fees always apply.