Vending Equipment Sales & Service
Let’s look at this
another way. What if you paid cash for the equipment?
You would need to generate $ 30,000 income to pay cash for a
$30,000 piece of equipment. And in addition, you would need to
generate an additional $ 7,200
worth of income to pay a 24% (assumed) income tax on the
required income.
Your total earnings would be $ 37,200.
This means to pay for a $ 30,000 piece of equipment, and earn
enough to pay the
taxes on the income, it would cost you $ 37,200 in pretax
dollars.
Leasing Does Make Sense!
With leasing you make your payments with PRETAX dollars. That
means if you spend $30,000, it only cost $30,000, not $ 37,200.
When you look at the true cost of money, including taxes,
leasing could save you $3,420. That is the $ 7,200 you could pay
in taxes, minus $ 3,780 cost of this lease not to mention the
lost interest you can earn on $30,000.00 over the 60 month
lease.
Could you use a $ 3,420 savings?
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Charles Hanna further expands upon the subject
of financing in his book:
THE VENDING INDUSTRY -
History, Secrets, Trends, Opportunities, Scams.
HANNA OFFERS ……
Winning Reasons Customers Should Lease |
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1) 100%
Financing: Without touching your cash reserves you can have new
profit making
equipment, and use your cash for working capital. |
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2) Preserves
Credit Lines: With leasing you keep your credit lines liquid for
capital intensive
needs such as; additional personnel, building expansion
or improvement, and inventory. |
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3) Tax
Benefits: In many cases lease payments can be a monthly expense
item, giving you
greater flexibility at tax time. |
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4) Flexible Payment Plans: By leasing you can structure your
payments to fit your budget.
When you know whatever you budget. When you know what
your monthly capital outlay
is going to be on a consistent basis you can better
plan for future growth in your company. |
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5) Allows Equipment To Pay For Itself: Would you pay an
employee their salary five years in
advance? Of course not. But when you pay cash for
equipment you’re essentially doing
this. Allow the equipment to pay for itself as you use
it. |
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6) Obsolescence Protection: With all the advances in
technology equipment can become
obsolete within a few years with a flexible lease
program you can keep your equipment up
to date and stay ahead of the competition. |
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7) Fixed Payments: Our lease is not subject to cancellation or
recall without notice unlike
most traditional bank borrowing. Also, a change
in interest rates does not affect your
established lease rate. |
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8) Increase Purchasing Power: By leasing your equipment you
can expand your credit ceiling
for future borrowing needs. |
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9) Simple Credit Process: A one page application is usually
all that is needed to get the credit
process underway. Most decisions can be reached
within 24 hours. |
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10) If It
Appreciates BUY IT! … If It Depreciates LEASE IT!!
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Click here for the Hanna Leasing Application - Word Format |
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or Download a .pdf version of the
Leasing
Application
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Adobe Acrobat Reader is required.
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