Benefits of Leasing

The Convenience of One Monthly Payment- In your lease, you can include maintenance insurance, tax, etc., One payment can cover all your costs, i.e. equipment, license fees, maintenance, shipping, etc. No need to pay for miscellaneous charges with your cash.

100% Financing, No Down Payment Required- Usually only the first and last payments are required to start a lease. The leasing company will finance 100% of the equipment cost, unlike banks that will insist on a down payment.

Conserve Capital and Overcome Budget Problems- With only a modest cash outlay (two advance rentals), working capital is free for investments or other uses. Remember, leasing has no down payments and having working capital in your checkbook certainly helps your business.

Provides Tax Benefits- Monthly payments are usually fully tax deductible and come from "pre-tax" income, not after-tax profits. This means that the government is absorbing up to 50% of the cost. This provides much better tax benefits than a loan with depreciation and interest.

Matches Benefits and Costs- By paying for the usage of equipment over the lease term, you match the timing of cash outlays with the benefits of usage.

Immediate Expansion- Capital spending budget limitations are no obstacle when equipment needs to be added or replaced now. Why Wait for a committee to approve your request for funds when a lease payment can be paid out of your existing budget.

Preserve Bank Lines- Your bank credit lines remain available for other needs. There is no reason to use your bank for equipment financing. Save It for other needs, like working capital, leasehold improvements, etc.

Simplify Bookkeeping- Lease payments go right to the P&L without having to deal with depreciation or interest. No depreciation schedules to keep, no loan authorization schedules to keep.

Avoid Obsolescence- The most modern equipment is always available to you and updating is easy. You can always keep up with your competition and not have to spend time selling your older pieces. You have all of the benefits of ownership and none of the burdens.

Fight Inflation- Lease payments remain the same throughout the life of the lease, instead of being tied to prime. How can you budget for next year if you have a floating rate note? With leasing you pay for today's needs with tomorrow's dollars at a fixed rate.

Improve Balance Sheet Ratios- Leasing is an "off balance sheet" transaction where you don't show the asset an your books and, more important, you don't show the debt to the leasing company, as it is a rental.

Zonal Hospitality Systems, Inc., 206 West Sybelia Avenue, Maitland, FL 32751. Tel: 407-539-0092; Fax: 407-539-2144.