Cash tied up in fixed assets is no longer available to finance important profit generating areas such as inventory, production, marketing, research and development, etc.
All businesses have access to limited credit lines at their bank.
Operating Lines, Demand Loans, Mortgages and other term facilities must be kept within the bank's total exposure limit for that business. Easier Budgeting Lease terms, payment streams and purchase options can be tailored to meet most budgets. In addition, because most leases are based on fixed rates the customer is not at risk due to interest rate fluctuations. Expenses are matched to the generated revenues - a sound business management principle. In addition to tailored payment streams, leases can be designed with different types of purchase options.