Services

Tax Benefits

At LWC we feature simplified documentation, easy one page applications, no financial statements in most cases, accelerated approval times and more. All designed to get you the equipment you need without delay.

A typical lease finances as much as 110% of the equipment cost because it usually picks up delivery, installation and other soft costs. It only requires one month’s rent in advance; there is a UCC filing only against the specific equipment leased; and the leasing company won’t bother you for the next five years as long as you make your payments. At the end of that time, they will sell you the equipment for its then current fair market value (probably minimal); and you will have expensed the payments directly for tax purposes.

Furthermore, LWC will vary lease payments to match your cash flow curves. If you are in a seasonal business, that can be a crucial benefit to leasing. We will also match the payments to the logical period of time that you will be using that equipment before it is necessary to upgrade; and will allow you to upgrade without penalty. These are just some of the “custom” features available in our leases that usually aren’t in a bank lending agreement, and they affect your net cost. So, when considering financing, look beyond rate alone to the underlying considerations.

We Make it Easy

Article 179

Through a quirk in the tax laws, it is now possible to “get paid in advance” to add equipment. Small businesses can write off up to $100,000 of equipment the year they put it in service. It is not necessary to depreciate it over several years. By leasing that equipment, you can have the government pay it’s share in front, essentially getting free use for over a year.

Example: You buy a $100,000 piece of equipment and finance it on a 60 month lease/purchase contract with a monthly payment of about $2200. If you’re in a 34% bracket, your first year write-off comes to $34,000, enough to make the first fifteen lease payments (34,000 2200 = 15.45).

Direct Tax Expensing

For companies not qualifying for or choosing the Article 179 alternative, lease payments are written off as made, eliminating the need for depreciation schedules and allowing faster write off. The result of this is more cash freed up for other uses than would be available in a purchase/depreciate environment.

100% Plus Financing

Get 100% financing plus the additional funds to cover costs. Strada leases can cover everything you need to make your equipment work for you. This includes software, installation, related leasehold improvements, training and even some supply items. All of this reduces your initial costs to minimal levels, letting you earn profits from your new equipment faster.

Lease payments can be matched to project revenues; seasonal cash flow variations; budget limitations and other challenges. The need to divert cash, or add to loan balances is removed. Our leases can be structured with no payments for up to six months, longer amortizations, and PUTs, TRACs or other optional alternatives to lower payments even further.

We can structure leases to meet FASB requirements for “off balance sheet” accounting treatment. Since the total committed lease payments now show as a footnote rather than as a liability, the overall ratios are improved and there is less risk of lending covenant violations.

What Everyone is Saying About Equipment Leasing

“Leasing has clearly gained popularity with small firms … it is so much easier than going to the bank.”
The Wall Street Journal

“Firms now lease everything but time.”
U.S. News & World Report

“Leasing equipment has long been a popular means of reducing business costs.”
INC.

“Leasing is … one of the few remaining sources of fixed rate financing … there are clearly substantial economic attractions.”
Forbes