Manufacturing Financing Services
MFS Home
MFS Products
MFS Credit Application
MFS Why Lease
MFS Financial Calculator
MFS Core Values
MFS Contact
MFS Your Account
MFS Tax Tips
Manufacturers Financing Services - Why Lease
Why Lease?

Benefits of Leasing  •  FAQ's

Benefits of Leasing

Leasing can put equipment to work for you NOW with
real CASH-FLOW advantages – All without a major capital investment!

Preserve Working Capital
Leasing requires little or no cash outlay and may provide 100% financing.

Preserve Lines of Credit
Leasing will not impact the availability of your organization’s credit lines.

Fixed Payments
Lease payments are fixed for a specific period of time with no annual adjustments.

Inflation Protection
Leasing lets you beat inflation by paying for the use of the equipment with tomorrow’s devalued dollars.

Flexible Terms
Lease terms can be structured to meet individual customer needs with:

  • $1 Buyout
  • Step Payment Plans
  • 60- & 90-day Deferred Payment Plans
  • Early Buyout Option
  • Capped FMV Option Lease (CAP)
  • Fixed Purchase Option
  • Rental Programs
  • Tax Leases

Tax Benefits
A company may deduct the cost to lease equipment as a necessary business expense.
(For more information click on Tax Tips button)

Obsolescence Protection
Business growth, advances in technology, and organizational changes – all of these can render existing equipment obsolete. Leasing enables customers to modify and upgrade equipment quickly and efficiently.

There are many advantages to leasing equipment versus buying!

FAQ's: Typical Questions Asked ~ Leasing / Renting vs. Buying

What is a Lease?
A lease is a contractual agreement for the use of certain equipment. It is entered into between the owner (Lessor)
and the equipment user (Lessee). The Lessee agrees to pay the Lessor a monthly rental payment for the right
to use the equipment for a specified length of time (term).

The resale value (residual value) of the equipment at the end of the lease term is taken into account in the pricing
of most leases. A higher residual value at the end of the lease usually means a lower monthly rental payment.
The end of lease purchase option can also be structured to meet the Lessee’s needs.

Leases usually require one or two advance rental payments at inception. Some leases can be arranged with zero advance payments. They are usually specified as the first and last month’s rental payments, but can also be defined
as security deposits or prepaid purchase options.

How Does Leasing Work?
1. Select the equipment
2. Complete a credit application
3. Lessor issues a credit approval once the credit is approved
4. Lessor purchases the equipment and leases it to your company for a monthly rental payment
5. Upon expiration of the lease, you have the option to purchase, release, replace or return the equipment.

How Does Leasing Benefit My Business?
Here are some reasons why 80% of all U.S. companies are leasing:
• Leases tend to be more flexible than loans
• Leasing allows more timely equipment acquisition
• Leasing provides the benefits of ownership without the expense of ownership
• Lower up-front investment
• Monthly payments can be structured with flexible payment options
• Predictable fixed payment plan - no variable rates
• Preserves line of credit for other business uses
• Higher-quality equipment is affordable
• Qualifying is easier with a lease
• Tax advantages (see Tax Tips button)
• Installation, sales tax and freight can be included in the lease
• Minimize working capital usage

Why Lease with MFS?
• Competitive rates
• Simple, one page application for amounts up to $150,000 (and even higher in some instances)
• 24-48 hour credit decision
• 36-60 month terms
• Customized payment structures
• We provide a lease structure tailored to your industry
• Talk to a real person, not a recorded answering device

back to top