Amid Economic Downturn - Leasing Provides Alternatives

Equipment leasing vs. buying is more attractive during periods of economic downturn, and the financing of equipment is becoming increasingly important as businesses strategically invest in their infrastructure.

Westborough, Massachusetts Leasing instead of buying can be one very smart business decision. Westborough based records management and storage company, Systematics, Inc., announces Smart Storage Leasing, a program to provide leasing solutions to finance records management and storage investments by spreading the costs over time. Financing is becoming increasingly important as businesses strategically invest in their infrastructure. Many businesses now realize that how they acquire their filing and records storage solutions is just as critical as the investment decision itself, according to Tom Carmody, Director of Sales for Systematics. “It allows you to manage your cash flow better and conserve capital budgets” said Carmody. Most importantly, this alternate financing solution enables organizations to drive a proactive financial management strategy. “Opting for lease financing can therefore ease the uncertainty of future space planning needs and their impact on business planning” Carmody continues. Benefits of Systematics’ Smart Storage Leasing program include: Conservation of Working Capital With an equipment lease, you get 100% financing so the amount of cash needed up-front is reduced. Even if you have the cash to purchase your equipment it may not always be the best choice. With equipment leasing, cash can be used for other business uses such as expanding sales, new marketing programs, quantity discounts, increasing inventories, opening a new line of business, or simply cash reserves. Tax Advantages Operating leases are generally treated as fully deductible direct operating expenses, which mean a lower taxable income. In addition, equipment leasing can be a tool to avoid certain negative impact of the Alternative Minimum Tax. Your tax professional should be consulted to determine what percentage of other types of leases could be deducted. Companies who lease make fewer compromises on what they acquire and can generally afford to buy more. More choices, more equipment, and lower costs allow you to get the equipment you need without compromising on choice. You make the arrangements as to price and specifications with the supplier you have selected. You retain all manufacturer's warranties and guarantees. In addition, equipment leasing can be an excellent way to grow your business because you can reduce your out of pocket expenses giving you more convenience and greater control. Because a lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, making you more attractive to traditional lenders when you need them.

# # #

About Systematics Headquartered in Westborough, Massachusetts, Systematics provides a full range of integrated storage and filing solutions including high density shelving, office and library shelving, specialized furniture and fixtures, mailroom furnishings and millwork, and material handling products for both office storage and warehouse storage applications. With a proven commitment to excellence, Systematics has been exceeding customer expectations since 1981, providing solutions to maximize storage, optimize workspace, streamline workflow, and increase productivity.