Outdoor Electric Sign Leasing

Why Should I Lease my Signs?

As independent businesses prepare to compete and grow in a new millennium, many are searching for proven new ways to address their equipment financing challenge. The old ways wont meet todays and tomorrows needs. The choice for many businesses is clear: sign leasing.

Equipment Leasing Association research shows that eight out of 10 U.S. companies lease some or all of their equipment. Of all the ways to acquire equipment, leasing is the method most frequently used for all equipment types. In fact, almost any type of equipment can be leased - from computers and phone systems, to tools and kitchen equipment. Outdoor electric signs and LED message centers can be added to the list of assets that can be leased.

Choosing to lease is a smart way to acquire your business signage. There are three ways to acquire and lease a sign -- you can choose whichever way fits best with your companys needs.

1.Work with a vendor that offers leasing as part of their sales program.

2. Find the signs you want, and look for a leasing company that can work with the sign company.

3. Go directly to the lease company and ask them to provide a list of approved sign vendors.

What are the Benefits of Sign Leasing?

Leasing you signs offers numerous advantages over other financing methods:

Tax treatment - The IRS does not consider an operating lease or a true lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your corporate income.

Balance sheet management - Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, thus making you more attractive to traditional lenders when you need them.

100% financing - With leasing, there is very little money down - perhaps only the first and last months payment is due at the time of the lease. Since a lease does not require a down payment, it is equivalent to 100% financing. That means that you will have more money to invest in revenue-generating activities.

Immediate write-off of the dollars spent - Therefore, the equipment does not have to be depreciated over five to seven years.

Flexibility - As your business grows and your needs change, you can add signs at any point during the lease term through add-ons. If you anticipate growth, be sure to negotiate that option when you structure your lease program. You also have the option to include technical support programs, and service or extended warranties.

Customized solutions - A variety of leasing products is available, allowing you to tailor a program to fit your month-to-month or year-to-year cash flow needs. You are able to customize a program to address your needs and requirements - cash flow, budget, transaction structure, cyclical fluctuations, etc. Some leases allow you, for example, to miss one or more payment without a penalty, an important feature for seasonal businesses.

Asset management - A lease provides the use of equipment for specific periods of time at fixed payments. The lessor assumes and manages the risk of equipment ownership.

Updated technology - The nature of retail business demands that you have the latest technology, a short-term operating lease can help you get the right sign and keep your cash. Lease equipment that you expect to depreciate quickly. Your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to meet your growing businesses needs.

Speed - Leasing can allow you to respond quickly to new opportunities with minimal documentation and red tape. Most of the time we will approve your application within one hour and you can have your new sign very quickly.

Improved Cash Forecasting - The lessee knows the amount and number of lease payments so they can accurately forecast the cash requirements for outdoor advertising.

Flexible end of term options - Buy outs range from $1 to 10%.

Tax Benefits - Lessors can pass the tax benefits of ownership on to the lessee in the form of lower monthly payments. If you are in the Alternative Minimum Tax Bracket, a true lease will provide you with an attractive tax benefit.

Improved Earnings - Operating lease accounting provides a lower cost than a capital lease in the early years of a lease ...continued

For more information on Outdoor Electric Sign Leasing.

David Evarts has extensive experience in the outdoor advertising and business signage category. Contact Axiom Signs for additional information or consulting.