Did you know that 80% of U.S. companies lease equipment?

There are two primary reasons: leasing helps your money work harder, and leasing is easy and simple.

LEASING HELPS YOUR MONEY WORK HARDER

Leasing frees up cash.
Unlike purchasing, leasing allows you to pay for your equipment as you make money through its use. This means that instead of spending working capital on equipment, which is a depreciating asset, you can invest in more profitable areas, to maximize your return-on-investment and return-on-equity. Your working capital can be invested in personnel, marketing, expansion, inventory, or future business acquisition. Alternatively, you can preserve your cash for unknown emergencies.

There are tax benefits.
A properly structured operating lease (FASB qualified) is 100% tax deductible. Moreover, deductions are taken from pre-tax earnings, not after-tax profits.

Leasing is a hedge against inflation.
Lease payments, which are based on the value of the dollar when the lease is signed, don’t change; thus, they’re immune to inflation. In contrast, bank lines of credit have variable rates.

There are no down payments.
Unlike bank financing, there are no down payments with leasing.

You choose the payment stream.
You select the payment stream that best fits your budget.

You have more purchasing power.
You can acquire more equipment; even more higher-end equipment, because you aren’t limited to your current cash or credit line.

You can upgrade equipment.
At any time during your lease contract you can easily upgrade and refresh your equipment, so you avoid devaluation. You can have the most current technology equipment available.

You build available credit.
We compliment your bank relationship as an additional source of capital. Your bank lines remain available for other uses, where traditional financing or leasing would not be efficient or effective.

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You maintain your equity.
Many companies dilute their equity because they have to raise capital through adding shareholders or partners, or they limit their lines of credit with loans on fixed assets. Leasing can help alleviate this situation.

Your balance sheet isn’t weakened.
An operating-type lease doesn’t change the appearance of your balance sheet, because you’re not required to add a liability or reduce working capital. In contrast, when you purchase equipment, you’re either adding debt or reducing cash.

It’s a good option when budgets are tight.
If you have capital budget restrictions, we may still be able to find a workable lease arrangement so that you can acquire your business-essential equipment under your operating budget.

LEASING IS EASY AND SIMPLE

Managing a lease saves you time.
Carlton is responsible for processing all invoices and other paperwork, including price verification; qualifying and quantifying machine make, model and serial number; and so on. Your Carlton account administrator acts as the interface between the equipment vendor(s) or manufacturer(s) and you, the end user or lessee.

Leasing is less restrictive and confusing.
Most loans contain multiple restrictive covenants that are often hard to understand and difficult to compute. Carlton’s master lease does not contain restrictive covenants, which promotes flexibility and creativity in your financial decisions.
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ARIZONA SALES OFFICE
3029 Dollar Mark Way, Suite C
Prescott, AZ 86305
(928) 777-7003 * Fax (928) 777-9083
 		CORPORATE OFFICE
1907 E. Wayzata Blvd., Suite 180
Wayzata, MN 55391
(952) 831-4490 * Fax (952) 831-4201

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