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Leasing

TriSateTruck Memphis 008 20080707

• Ability to Approximate Transportation Costs: Leasing provides a good foundation of what your cost will be on a monthly, quarterly and annual basis. The cost of the lease or rental payments, residuals, services requirements and mileage rates are all put into the contract that both parties agree to. The lessee does not have to worry about issues such as, technology and EPA improvements, new mechanics and tools for maintenance and administrators to take care of license and registration. 

• Avoiding Depreciation: Since the lessee is not taking ownership, They do not have to take financial responsibility for sudden devaluation of the equipment or declining markets for equipment resale. 

• Improving Cash Flows: Most leases do not require large down payments. This frees up monies and credit lines to banks for other purposes like technology upgrades, building expansions and emergency funds. Leasing and renting provides greater financial flexibility.

• Off-Balance Sheet Transactions: Operating Leases and Rentals are not recorded on Financial Statements and Balance sheets. This improves financial information that is important to Banks and other lending institutions.

• Flexibility: Leasing and Renting provides the lessee with a broader spectrum of monthly payments depending on the number of years and the residual values. Again, down payments are not required on most leases and certainly almost all rentals. Provisions such as "Loss of Business", "Swap Options", and "Early Termination" clauses helps the lessee prepare and cope with changing equipment needs and negative economic conditions. 

• Concentration on Core Business: Leasing and Renting allows companies to focus on their core businesses. Capital, employees and other resources applied to the core business will improve the bottom line and increase profits.