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For more information contact Christine Corelli, president of Christine Corelli and Associates (Morton Grove, IL) at (800) 611-9968, via e-mail at cc@christinespeaks.com or visit the Web site at www.christinespeaks.com.

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The Advantages of Leasing
1. Conserves capital and preserves bank lines Leasing frees up cash for other income producing investments and can be structured to allow a faster tax write-off. A lease covers many soft costs and doesn't require significant down payments. Your new equipment is making profits immediately without touching your cash reserve, thus allowing you to use cash resources in other areas. Additionally, it keeps your credit lines open to handle seasonal inventory requirements or emergencies. Your bank may be reluctant to grant fixed rate equipment loans, which tend to require larger down payments and compensating balances, and may not be knowledgeable about equipment purchases.

2. Overcomes tight budget limitations Many firms have found that small monthly payments for leased equipment can be squeezed into the tightest of budgets. A lease helps justify a purchase to management who may have delayed a decision until next year because of budget restrictions. Leasing enables companies to acquire equipment they might otherwise have not been able to afford.

3. 100 percent financing Leasing provides 100 percent financing on the needed equipment including software. Service contracts, training, sales tax, freight and installation charges all can be incorporated into the lease structure, reducing the initial cash outlay.

4. Hedges against inflation Through leasing you can acquire equipment at today's cost, but your monthly expense payment is made with tomorrow's inflated dollar. This is the clearest advantage of leasing.

5. Eliminates obsolescence Advances in technology are being made quickly. To help you remain competitive, some leasing companies offer no penalty upgrades so that your equipment is always state-of-the-art.

6. Fast tax write-off (operation lease) A true lease (without mention of purchase price at termination) can be written off 100 percent as an operation expense, which is faster than depreciating the equipment. The resulting deferral of tax liability results in lower cost on a present value basis.

7. Balance sheet effect Leasing provides off-balance sheet financing and is recorded as an operating expense providing greater flexibility to overall corporate planning. Equipment purchased with borrowed money increases liability and decreases liquidity. Similarly, cash purchases have the same effect by increasing fixed assets and decreasing current assets, therefore reducing liquidity necessary for future business decisions.

8. Leasing is convenient and flexible Easy documentation and credit processing, unlimited choice of equipment and vendors, inclusion of soft costs and a wide variety of payment schedules to meet any budget challenge contribute to make leasing the right financial move.

9. Equipment leasing pays for itself Through leasing you can pay monthly rentals out of savings or increased profits derived from the equipment use.

10. Your company can grow with reduced risk Through incremental monthly payments you can expand and evolve your business to meet the next competitive challenge. The idea behind your equipment acquisition is business growth. There are many reputable leasing companies that specialize in the moldmaking industry. Find one that can offer the flexibility to structure a lease that is tailored to your needs.