“Nearly 20 years ago, Cameron Financial began providing lease financing to KBH customers.  Since that time, we have appreciated the speed and efficiency with which transactions have been handled. Large sales or small, agri-businesses or farmers, Cameron Financial is KBH’s first preference for providing capital for our customers to help them sustain and grow their business.”

Tim T.
The KBH Corporation
Clarksdale, MS

Ask yourself, “Should I lease equipment?”

Check out the benefits before you decide!

If you’re wondering "Should I lease equipment?" you owe it to yourself (and your business!) to thoroughly research the benefits of leasing. For your convenience, we’ve laid out many of the benefits you can expect once you’ve decided to move forward with your lease.

Improved Cash Flow — We can customize a payment schedule to match your cash flow, including a special “after harvest payment” program.

No Additional Collateral Required — We require no additional collateral or security other than the equipment you lease. This preserves the conventional financing relationships you already have in place.

You Can Preserve Your Current Lines of Credit — A lease with us should not affect your company’s operating line of credit. Because leasing provides an alternative source of credit, you can retain your borrowing capacity with other lenders for day-to-day operating needs.

100% Financing — Leasing normally covers the complete equipment acquisition, including much of the soft costs such as installation, freight, etc. Payment terms are available with an advance payment as low as one monthly lease payment.

Tax Benefits — Lease terms are usually shorter in length than the depreciable life of the equipment, which can result in a faster write-off of the asset. Likewise, certain leases can be structured for you to take full advantage of depreciation.

Transfer of Assets — Leasing can be used to transfer the ownership of an asset to a designated heir (which saves on estate taxes) at the end of your lease.

Potential Sales Tax Savings — Normally, if any state/local sales tax is charged, the tax is collected and paid over the term of the lease by simply adding it to each rental payment. In many cases, if the leased equipment is sold or traded in to a dealer prior to maturity and before the lease is paid off, sales tax will not be charged on the owing balance.

Flexible Lease Terms — Our goal is to match your payment to your cash flow so a lease can be tailored to your specific needs. This includes consideration for the timing of your cash flow, the fiscal year end, budgeting cycles and cyclical fluctuations.

Margin Management — Leasing matches equipment costs more closely with its use and many farmers make evaluations based on revenue or cost per unit. Leasing makes unit comparisons easier than conventional financing.

Balance Sheet Ratios — In some cases, leasing may allow you to exclude leased assets and related obligations from your balance sheet. Such moves can improve financial indicators, such as debt to asset ratio. Keep in mind that you should consult with your accountant or financial advisor for the full tax consequences of leasing.

Less Financial Information Required — Leasing usually requires less financial documentation than bank loans, meaning they require less preparation and are usually easier to secure. For most equipment, earnings information is normally not required for transactions under $250,000.

Fixed Payments — Leasing is not subject to interest rate fluctuations. You negotiate the payments upfront and they stay fixed for the term of the lease. This allows for easier cash flow projections and budgeting for future years.

Various End of Term Lease Options — Leasing allows you several options at maturity. You can purchase the equipment for a pre-determined fixed amount, renew the lease or return the equipment at maturity. Purchase options are pre-set at the commencement of the lease and can range from as low as $1 to 50% of the original cost. Remember that the higher the residual, the lower the rental payments are over the term.

Conserve Working Capital — For liquidity purposes in a business, cash is extremely important. A lease requires a nominal advance payment, thus preserving your working capital.

So stop asking yourself, “Should I consider a lease?” Call or email Darryl Yochem today to get started!

1-800-960-4456
fax: 1-800-500-9505
dyochem@cameronleasing.com

Cameron Financial - Equipment Leasing & Financing Specialists

Physical Address: 3200 West End Avenue, Suite 500, Nashville, TN 37203
Physical Address: 4030 Wake Forest Road, Suite 300 • Raleigh, NC 27609