In
today’s highly competitive market, new equipment can help businesses
better compete and grow. Leasing can provide a way of acquiring these
necessary assets without impacting bank lines of credit while helping
improve cash flow.
Because of Conrad’s expertise, we can help you lease almost any
equipment. Shop equipment, CCTV, computers, computer software and office
equipment, even store upgrades including signage, furniture and fixtures
can all be included in a lease.
The
idea behind the Conrad program is quite simple: you wouldn’t pay an
employee five years wages in advance; you pay wages as they are earned.
Equipment should be paid for the same way. Let the equipment “EARN” its
way by generating the income or savings each month to make the lease
payment…that is a real win/win situation.
LET’S
LOOK AT THE FACTS
As
a business owner competing today, you have three primary financial
concerns:
·
Monthly
cash flow requirements
·
Funds
available for growth or emergency
·
Making a
profit
Equipment is necessary for the profitable operation and growth of your
business. When acquiring the equipment you need to better operate your
business, you have four options as to where the money comes from for the
acquisition:
1. Using cash that is already available
2. Using an available bank line of
credit
3. Saving cash in advance for a
specific equipment purchase
4. Leasing the equipment
Let’s look at these four alternatives considering your primary financial
concerns.
AVAILABLE CASH OR CREDIT LINES
For
the purpose of this review, both cash and credit are the same. Both
offer maximum flexibility in that they can be used to pay for anything
and for that reason they should be guarded very closely.
Cash or credit lines can be used to buy additional inventory you need to
increase sales, they can fund your own accounts receivable if credit
terms are required to make a sale, or for operating expenses such as
advertising, payroll or rent. They can also be used to purchase
equipment, but then those monies are no longer available for other
purposes.
If
you were to experience an unexpected drop in sales you might be forced
to dig into savings to keep the business going; if no savings exist you
might have to sell assets, usually at a loss, to pay operating expenses.
In extreme cases, lack of operating funds or available credit could
force a liquidation of the business. Cash or credit should be saved for
other than equipment purchases.
SAVING CASH FOR YOUR EQUIPMENT PURCHASE
You
purchase and install equipment because it will make you money through
increased revenues or save you money thorough reduced cost of
operations. You’re not getting the equipment just to own it, but rather
because it improves your bottom line profit. The equipment cannot be
making or saving money for you if you’re not using it.
The
time you spend saving the necessary funds to purchase the equipment is a
period of unrealized profits. Those extra profits lost during the
savings period will never be recovered.
Additionally, saving plans are often interrupted by unexpected expenses,
thus requiring you to start the savings period over and prolonging the
equipment purchase. Consider the profits that are lost during the
savings period, and you’ll probably decide that equipment is worth
having now.
LEASING
Leasing is the best alternative for most businesses that are acquiring
equipment. Conrad’s leasing program has been designed to make it easy
and profitable for you to get the equipment you need, when you need it.
Let’s look how leasing addresses your primary concerns:
Monthly Cash Flow
The
revenue generated or saved from using the equipment should more than
cover the low monthly lease payment. So, leased equipment should have a
positive impact on cash flow. Let the equipment pay for itself with
improved cash flows.
Funds for Growth or Emergency
By
using a lease, your liquid assets remain available to help you grow your
business or to cover a short fall in case of a downturn in sales.
Profit
The
new equipment will reduce expense or increase revenue; either way, your
bottom line grows! Also, leasing offers substantial tax advantages that
help you keep more of the money you do make.
LEASING ADVANTAGES
$$ Tax Benefits
$$ Conserve Cash and Credit Lines
$$ 100% Financing
$$ Fight Inflation
$$ Small Up-front Cost
$$ Terms to Suit Your Needs
