Can a capital equipment lease program help to achieve your goals for 2016?
Kevin F. Clune, CLFP
Are you ready to re-focus on your 2016 business plans? With summer vacations and two quarters of the year behind us, are you making a final push to complete your 2016 strategies for growth?
According to a July 29th WSJ article that reported a dismal 1.2% GDP in the second quarter, the low rate of growth was largely due to “reduced business investment, a large paring back of inventories and declining government spending.” Additionally, the author reported that “Companies also spent less on buildings and equipment this spring.” Lastly, “The Presidential Election is on the minds of some firms.”
The good news is that economists, including Mr. Gregory Daco of Oxford Economics, “expect growth to accelerate in the third quarter.” Also, San Francisco Fed President John Williams said, “underlying figures in the GDP report were encouraging”, and he predicted, “We’ll be raising rates, not lowering them, over the next several years.”
Recognizing that these are uncertain times for equipment vendors and also for business owners who have delayed capital investment, a lease finance program might be the perfect mechanism to fulfill your 2016 goals. Advantages include:
1. 100% of cost is financed
2. Easy Budgeting
3. Preservation of Credit Lines
4. Tax Advantages
Dealers who recommend a lease to their customers as another means of acquiring necessary equipment will make their sales quotas more easily. They will have also gained a relationship for future transactions. Business owners who replace outdated machinery will be more productive and profitable, allowing them to achieve the growth they anticipated. With predicted rate increases from the Federal Reserve, it might be good to lock in a rate this year.
Independent Leasing companies are best equipped to customize a lease contract to meet the unique needs of all parties involved and are typically more accessible throughout the negotiations and the life of the contract. They also offer a variety of end of lease options and allow the customer to choose the outcome that is best for them.
Unbeknownst to many, a lease that results in ownership of the collateral at the end of the contract, can also be claimed for Section 179 Tax Benefits and accelerated depreciation. Since this law is subject to being withdrawn in the next legislative session, it behooves one to take advantage of the savings this year.
We would be glad to help your company achieve its’ goals for 2016.
It’s the “lease” we can do,
Kevin F. Clune CLFP
Clune & Company
