The Superiority of Leasing as a Financing Strategy
A business owner generally has 3 options in financing capital assets:
Leasing
Bank Financing
Paying Cash


Option ONE: Leasing
Leasing is your best long-term financing solution. By leasing instead of paying cash up front, you free up capital for other purposes as your business grows. You need databases and high-speed on-line connections to manage information files on customer preferences, keep track of your best vendors, monitor the competition and emerging markets, and communicate with customers in an instant. You need attractive furnishings and functional equipment. You need marketing support and a trained, motivated staff. All of this takes capital...and you'll have more of it by leasing-rather than buying-capital assets.

You'll enjoy the reductions in repair and maintenance expenses that come with newer equipment, plus the operational efficiencies that accrue when technology resources are acquired through a well conceived plan.

Leasing also rewards you with:

• Off-balance sheet financing
• Payment amounts that are determined up front
• Fully expensed lease payments
• Potential tax benefits
• Seasonal payment structures
• Fixed-rate financing

With BCF, your business keeps pace with changing technology through our flexible lease structures and upgrade options tailored to grow as your business expands.


Option TWO: Company Bank Financing versus Leasing
Bank loans allow you to preserve some capital at the outset, however, requires a down payment of 10 to 20 percent based on your loan request. And will be subject to the risk of technology and equipment obsolescence that comes with ownership. Moreover, banks loans are cumbersome administratively and impose other covenants that narrow your financial options.

Banks can be inflexible if you already have your credit lines with them. Bank loans often require compensating balances, availability charges, and non-usage fees. - All of these are not required by BCF.

On the practical side, banks will not support technical difficulties with your equipment, nor will they take old equipment off your hands when it's time to upgrade. For your business to grow, you can't afford to be stuck with older equipment and technology. To maintain that competitive edge, you need the best financing solutions available by leasing through BCF.

Finally, consider that banks also shy away from some of the most important investments like: software, tenant improvements and other "soft collateral." BCF understands these types of investments and is comfortable in providing either off balance sheet financing or capitalized lease structures.


Option THREE: Paying Cash
Cash Rules! Paying cash depletes your hard-earned capital reserves, preventing you from allocating cash to more important uses like advertising or business expansions and renovations. And by paying cash in full at the outset, you can only depreciate and write off a small percentage of the original cost each year. With something that changes as quickly as computer technology, you may be saddled with outmoded inventory tracking equipment or POS systems before they're fully depreciated, potentially resulting in a book loss and a negative hit to profits.

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