You may be able to benefit from important tax and accounting benefits through leasing that lower the net acquisition cost of new equipment. Operating Leases defer a significant portion of the total equipment cost to the end of the lease term, which makes monthly payments more affordable than conventional loan financing. Leasing also usually avoids the multi-level capital budget approval process and can be funded through and operating budget, capital budget, or a combination of both. Lease payments are fully deductible against income for federal income tax purposes, providing a significant tax benefit. Lease agreements do not contain restrictive covenants that can reduce a company's decision making autonomy and independence, offering greater flexibility and non-restrictive financing options.
All transactions are subject to prior credit approval.
Lease pricing is based upon current US Treasury Note interest rates. Lease pricing is fixed for the full term of the lease and is established according to the average Treasury Note yields for the week preceding the week in which the equipment is delivered and accepted by the customer. For most customers, it is likely that leasing will yield meaningful tax and accounting advantages that serve to lower the acquisition cost of Schneider equipment.