Harness the Power of Leasing with Northland Capital LLC
Equipment leases can be a powerful tool in your financial toolbox. Leases offer some benefits and flexibility that traditional credit loans do not. Virtually any piece of equipment associated with agriculture can be leased—as well as out buildings, field tile, and warm storage buildings.
Some advantages a lease option can provide are:
- Minimize Down Payments – Most leases require only one or two payments in advance. Get immediate use of the equipment and keep your cash available for other opportunities.
- Significant Tax and Accounting Advantages – Operating lease payments are generally a line item overhead expense on your tax statements. Therefore, you are able to pay for the equipment with pre-tax dollars rather than after-tax profits. Leasing keeps equipment – and debt – off your balance sheet.
- Preserve Existing Lines-of-Credit – Leasing has no impact on your bank credit lines. Protect your borrowing power for other operational needs.
- Convenient Source of Additional Capital – Keep your business’ cash for future needs, unexpected expenses, or working capital when revenues are low.
- Fixed Payments – Lease payments are fixed no matter what the market does.
- Planning Flexibility – Structure payments around your operation with leasing that allows the revenue-generating power of your equipment to cover equipment costs.
- Section 179 – Certain lease structures qualify for the Economic Stimulus Act deductions and bonus depreciation. For more information on S179 click here