Leasing

Corptech, Inc. offers several financing alternatives to a straight purchase. Leasing is just one way to obtain a new AS/400 and offers certain advantages. Here are some Leasing Q & A's:

Q: I am able to pay cash or I have a line of credit at my bank. Should I lease?

A: Yes. In addition to the tremendous tax advantages, leasing enables our customers to leave their cash and line of credit untouched, available for other needs.

Q: What if we have a high rate of inflation? Wouldn't I be better off buying?

A: Just the opposite. You would be better off leasing, and here's why: Our customer acquires today's equipment with tomorrow's cheaper dollars. Leasing is a hedge against inflation.

Q: I want to lease an entire computer system, not just the hardware. Can this be done?

A: Yes. A leasing that knows the customers needs will include everything we sell: hardware, software, maintenance, installation, training, furniture, supplies, freight, etc.

Q: What limits are imposed on the amount of software that may be included in a computer lease?

A: None. We let you include software without any limit-even a 100% software lease (no hardware).

Q: How about this? I have a lease that has been in effect for a while and I would like to add more equipment or software. Can I do it?

A: Yes.

Q: Are you saying leasing covers add-ons?

A: That's right. The customer can add future purchases to the existing lease. He then makes a lease payment combining the original and new equipment. Can you see how flexible leasing can be?

Q: What if I want to prepay the lease?

A: No problem, repayment is ok!

Q: If interest rates go up, do my payments go up?

A: No, they stay exactly where they are, even if interest rates go sky high. Bank loan payments, on the other hand, often change with prevailing interest rates.

Q: When the lease is up, can I keep the equipment? What can I do?

A: You can buy it from the leasing company, or you can continue leasing it on a month-to-month basis. Of course, you can also return it without further obligation-that's a great benefit for you if the equipment is obsolete.

Q: What's the big tax advantage a customer gets by leasing instead of buying?

A: Our customer can deduct 100 percent of the monthly rental payment for tax purposes-if it's a true lease.

Q: What does "true lease" mean?

A: A true lease is a lease which isn't a thinly disguised sale…and which meets other IRS conditions.

Q: Does a true lease mean a customer can take a dollar-for-dollar write-off?

A: Exactly. If you make a $2000 payment on a lease he can take a $2000 write-off. If the $2000 were payment on a loan, that write-off wouldn't apply.

Q: Under the present tax law, is this write-off advantage still applicable?

A: Yes, and it's even more valuable now than it was before, because the tax law has reduced the annual depreciation for many kinds of equipment.

For further answers to your leasing questions, contact us at 866 306-9406 or sales@corptechs.com