Leasing Benefits
The true benefits of leasing are realised in different ways.
Benefits of Leasing
Benefits will arise from an administrative point of view, particularly with large fleets of equipment. Leasing of new tractors from Power & Earth will help ease the pressure on your employees who would have been tied up looking after a fleet of motor vehicles. They will be freed to Experts in large tractor sales and lease or hirespend time on more productive tasks. Power & Earth will take care of all major breakdowns. A phone call to us is all it takes. From a budgeting perspective, leasing provides certainty; there is a fixed cost for the lease of the asset that can be taken into account for forecasting and cash flow purposes.
With purchase of equipment, the market value generally falls far more quickly than the equipment can be depreciated. By leasing tractors, a company has the choice to switch to the latest equipment at the start of the lease, or receive a new machine next season. The economic risk of attempting to recoup the equipment’s residual value, either by on-leasing or selling, falls back onto Power & Earth, which is better placed to access resale markets than is the lessee company.
Improve your company’s financial position
By leasing equipment from Power & Earth, your company can make the most of a reduction in liabilities on your balance sheet. This will improve your company’s balance sheet and financial position and hence increase your lending capability.
Save your company’s capital
Most companies are not sitting on massive stacks of spare cash, so to tie up capital through the purchase of expensive machinery makes little sense. You can utilise your capital in more productive ways.
Save time with no maintenance hassle
Especially apparent when operating large fleets of vehicles and machinery, the time and staff it takes to service equipment and keep it in top running order is a cost to your business. With this taken care of your staff can focus on more productive activities. Power & Earth will take care of all major breakdowns for you. One phone call is all it takes.
Predictable cash flow forecasting
An operating lease provides certainty because the lease is a fixed cost that can be taken into account for forecasting and cash flow purposes.
Avoid losses in machinery value
If you purchase a new piece of machinery, typically it will loose value faster than the depreciation you can claim. This makes leasing a better option for short- to medium-term use. Power & Earth take on the economic risk of on-selling the machine at the end of the lease.
Upgrade to the newest equipment at no cost
Leasing machinery from Power & Earth gives you the option to select the latest machine at the beginning of each lease, so you are always operating with the best equipment.