Vending Equipment Sales & Service
Let�s look at this
another way. What if you paid cash for the equipment?
You would need to generate $ 30,000 income to pay cash for a
$30,000 piece of equipment. And in addition, you would need to
generate an additional $ 7,200
worth of income to pay a 24% (assumed) income tax on the
required income.
Your total earnings would be $ 37,200.
This means to pay for a $ 30,000 piece of equipment, and earn
enough to pay the
taxes on the income, it would cost you $ 37,200 in pretax
dollars.
Leasing Does Make Sense!
With leasing you make your payments with PRETAX dollars. That
means if you spend $30,000, it only cost $30,000, not $ 37,200.
When you look at the true cost of money, including taxes,
leasing could save you $3,420. That is the $ 7,200 you could pay
in taxes, minus $ 3,780 cost of this lease not to mention the
lost interest you can earn on $30,000.00 over the 60 month
lease.
Could you use a $ 3,420 savings?
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Charles Hanna further expands upon the subject
of financing in his book:
THE VENDING INDUSTRY -
History, Secrets, Trends, Opportunities, Scams.
HANNA OFFERS ��
Winning Reasons Customers Should Lease |
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1) 100%
Financing: Without touching your cash reserves you can have new
profit making
equipment, and use your cash for working capital. |
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2) Preserves
Credit Lines: With leasing you keep your credit lines liquid for
capital intensive
needs such as; additional personnel, building expansion
or improvement, and inventory. |
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3) Tax
Benefits: In many cases lease payments can be a monthly expense
item, giving you
greater flexibility at tax time. |
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4) Flexible Payment Plans: By leasing you can structure your
payments to fit your budget.
When you know whatever you budget. When you know what
your monthly capital outlay
is going to be on a consistent basis you can better
plan for future growth in your company. |
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5) Allows Equipment To Pay For Itself: Would you pay an
employee their salary five years in
advance? Of course not. But when you pay cash for
equipment you�re essentially doing
this. Allow the equipment to pay for itself as you use
it. |
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6) Obsolescence Protection: With all the advances in
technology equipment can become
obsolete within a few years with a flexible lease
program you can keep your equipment up
to date and stay ahead of the competition. |
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7) Fixed Payments: Our lease is not subject to cancellation or
recall without notice unlike
most traditional bank borrowing. Also, a change
in interest rates does not affect your
established lease rate. |
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8) Increase Purchasing Power: By leasing your equipment you
can expand your credit ceiling
for future borrowing needs. |
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9) Simple Credit Process: A one page application is usually
all that is needed to get the credit
process underway. Most decisions can be reached
within 24 hours. |
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10)�� If It
Appreciates BUY IT!� �� If It Depreciates LEASE IT!!
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Click here for the Hanna Leasing Application - Word Format |
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or Download a .pdf version of the
Leasing
Application
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Adobe Acrobat Reader is required.
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