Archive for April, 2010

March 30, 2010: Onepath Systems announced a sponsorship of the Southern States Athletic Conference this past week.  The SSAC is one of the most competitive NAIA conferences in the United States.  The 16 institutions of higher learning are located in the southern states of Alabama, Georgia, Louisiana, Mississippi, South Carolina and Tennessee.  Onepath Systems will become the Founding Sponsor of Excellence.  The commitment to excellence in academics, sports and life is very consistent with the values of Onepath Systems and its partners.  Kurt Patberg, Commissioner of the SSAC, states “I am excited to have Onepath as our Sponsor of Excellence.  Their commitment to our program will enable us to continue to be one of the most competitive in the NAIA and demonstrates Onepath’s commitment to youth, education and excellence”.  For more information on the SSAC, visit SSAC Sports.

1. Use of Equipment Leasing is the use of an Asset – No business pays its employees in advance: they pay people as they contribute. It should be no different with a contributing asset like business equipment. Leasing enables you to pay as you use it.
2. Fixed Payments – Monthly payments are generally fixed for the entire term of the lease. This is a distinct advantage in times when many financing transactions have floating rates. Knowing in advance what your payments will be enables you to budget and manage equipment dollars for a long time.
3. Longer Terms – Many banks only lend money short term, usually 12 to 36 months. With lease arrangements, the term can be as long as 60 months, and in some cases even longer.
4. Protection from Obsolescence – Today’s equipment is technologically obsolete much quicker than before, due to developmental advances. This is especially true with computers.
5. No Down Payment – Most traditional financing options require a sizable down payment. On cash purchases, this can be as much as 20%. Leases may require a couple advance payments or no down payment.
6. 100% Financing – Traditional methods of financing usually do not include “soft costs” such as installation and freight. Lease transactions include both of these thereby allowing you to finance the total package.
7. Flexible Payments – Leasing fires will work to structure lease transactions to fit the needs of its customers. This gives you the opportunity to make the most of lease structuring variables as to the number and amount of advance payments, purchase options and seasonal or skip payments.
8. Simpler Than Bank Loans – Lease programs and procedures are specially designed to take the red tape out of financing capital equipment for business.
9. Purchase or Renewal Options – Most lease arrangements allow customers the option to either purchase at a stated amount, such as $1.00, 10%, Fair Market Value, or to renew the lease at a reduced monthly payment. These options can make up a structure to fit your needs.
10. Cash Flow is King – Because of the sizable cash outlay involved in purchasing new equipment, many businesses lease to conserve capital. Money that could be used to buy inventory, advertising, and hire additional personnel is better spent rather than purchasing equipment that is worth less as time passes. If you are in a business where you have important alternative uses for cash on hand, leasing always wins out in the “lease vs. buy” analysis.
11. Easier Cash Flow Forecasting – Equipment leasing, which is simply dollars-per-month financing, helps an equipment user fit a monthly payment into their budget. Because payments are fixed, users can continue to intelligently budget for the future.
12. Tax Benefits – Just as businesses have done for years, a lessee can usually deduct their monthly lease payments as an operating expense. This clearly reduces the net cost of the lease. It’s always best to talk to your tax accountant first; however, leasing is generally advantageous to most businesses. Our leasing source welcomes the opportunity to work with your tax accountant to give you the most tax benefits.
13. Additional Lines of Credit – When equipment is purchased with borrowed funds, credit lines with a lender are reduced. When equipment is leased, a business has, in fact, established an additional line of credit with its lessor.An equipment lease can generate positive cash flow to respond to new business opportunities.
14. An equipment lease can generate positive cash flow to respond to new business opportunities – The profits generated from the productivity of the equipment is usually greater than the lease payments.

Contact Onepath Systems today to discuss leasing options to determine if leasing is the right solution for your company’s projects as your IT Solution. Call us toll free at 1-877-ONESYS1 or email to info@onepathsystems.com.