WHY LEASE?

Conserves Working Capital- Leasing conserves your working capital by requiring only a minimum initial outlay of cash. Your working capital is retained for more productive operational uses and business opportunities.

100% Financing- In most cases leasing allows you to finance an entire purchase including software, hardware, consulting, maintenance, freight, installation, and training costs. You may combine Vendors and equipment into a single lease transaction.

Frees up bank credit lines- Leasing preserves your bank line of credit so that you are prepared for an emergency or other unexpected demand for cash.

Flexibility- Lease terms range from 12 to 60 months depending on equipment type. A lease may be structured to meet the needs of the customer by providing tax advantages, optimizing cash flow, and flexible end of lease options.

From start-up businesses with limited cash and minimal credit to more mature businesses seeking to preserve capital, or technology-oriented companies seeking to continually upgrade equipment, Globex can develop a leasing program to suit the needs of many businesses that banks would decline.

Ease and Convenience- Applying for a lease is easy and convenient. For general equipment leases under $75,000; Medical equipment leases under $150,000 just fill out a one-page application and a decision is made within one business day. Globex Capital simplifies the financing process, often completing lease transactions without the need for complex financial statements and additional disclosure documents required by most banks.

More Payment Options- By offering deferred payments for up to 90 days, step payment programs, 100% financing plans and terms up to 60 days, Globex Capital makes it easier for you to secure the equipment you need, without sacrificing you cash flow.

Hedge Against Inflation- Lease payments are based on the dollar's current value. These payments remain constant regardless of the future effect inflation has on currency value. Unlike bank lines of credit with variable rates, lease payments are fixed regardless of what happens to the market tomorrow making it easier to budget and forecast. You can acquire today's equipment with tomorrow's dollars.

Budget Constraints- Most leases can be structured so that payments are made with operating rather than capital funds. This can eliminate or reduce capital budget delays. Leased equipment can be purchased later if capital becomes available. A percentage of the lease payments can be credited toward the purchase of the equipment.

Tax Advantages- Operating leases are generally treated as 100% tax deductible business expenses paid from pre-tax earnings instead of after tax profits. Some leases allow you to take advantage of accelerated depreciation. You may be able to deduct the full price of the equipment in the year on purchase. Your tax professional should be consulted for more advice.

• IRS Section 179- Tax Savings (CLICK TO DOWNLOAD PDF)

Avoid Obsolescence- Leasing provides companies with the ability to keep pace with technology. Leasing allows you to easily add-on equipment or upgrade to a new piece of equipment to meet future needs. Because flexibility is one of the greatest benefits of leasing, you never have to be stuck with old, out-of-date equipment.

Pay As The Cash Flows- Leasing lets the equipment pay for itself. Equipment expense is paid on a monthly basis as the equipment earns revenue.

Fixed Rate Lease Payments- Fixed payments enable you to accurately predict the impact on cash flow and protect you against inflation or stock market volatility.