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Why Lease Office Funiture?

Leasing vs. loan for my office furniture needs

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TOP BENEFITS OF OFFICE FURNITURE LEASING

  • No down payment typically required.
  • Lease payments can usually be fully deducted as a business expense.
  • Easier to upgrade equipment as lessor takes risk of obsolescence.
  • Can be considered off-balance sheet assets, with no associated liability.
  • Conserves working capital and frees up existing bank lines of credit.
  • Often requires less stringent credit criteria.
  • Payments are fixed for the life of the lease, allowing easier budgeting.
  • Generally requires no restrictive covenants or financial reporting.

WHAT OFFICE FURNITURE LOAN PROGRAMS LOOK LIKE

  • Usually requires down payment of 20% or more of the purchase price.
  • Typically won’t include soft costs such as shipping, training, and installation.
  • Assets held as owned equipment without corresponding liability.
  • Tax deduction for the interest and depreciation portion of the loan payment may be utilized, but this amount is less advantageous than expensing the entire payment amount.
  • Borrower takes risk of equipment devaluation with technological obsolescence.
  • Often requires additional collateral than just the equipment being purchased.
  • Rates are often floating, subjecting the borrower to take risk that their payments could rise.
  • Often requires borrower to maintain certain financial ratios and report financials monthly.