Equipment Leasing Tax Savings Calculator

As Tax Day approaches, many businesses are focused on tax deductions, equipment depreciations and tax savings. Equipment leasing is a smart choice for business owners looking to acquire new equipment for a number of reasons. Equipment leasing can also benefit businesses during tax time as well.

Use Tiger Leasing's Equipment Leasing Tax Savings Calculator to find out how you can lower the true cost of ownership on your business equipment. Our Equipment Leasing Tax Savings Calculator is easy to use, and you can have an estimate of your savings immediately.

Recently, the Hiring Incentives to Restore Employment Act (HR 2847) was passed. This bill extends the increased section 179 deductions through 2010. This amount had been increased to $250,000 for 2009 by the American Recovery and Reinvestment Act. Non-Tax/Capital Leases allow you to take advantage of Section 179 deductions for recently leased equipment. These equipment leases also allow you to depreciate any excess as determined by the depreciation schedule for that asset.

Equipment leases allow for other tax benefits, so contact your tax professional today. For an estimate of your tax savings, and the cost of your equipment acquisition, use our Equipment Leasing Tax Savings Calculator.

Our Equipment Leasing Tax Savings Calculator is just a tool for estimating your savings. Please contact your tax professional to learn about the specific impact to your business.

Equipment Leasing - When is the time right?

• When the risk is high that equipment will become outdated very quickly.
  
• Equipment leasing lets you upgrade your equipment on a regular basis. This eliminates the aggravation of owning out-dated equipment.
  
• When you need to conserve your cash and working capital.
• With equipment leasing, your cash isn't tied up in equipment. Instead, money is available for opportunities such as marketing, working capital, or seasonal cash flow needs.
  
• When you need to preserve your credit lines.
• Safeguard your existing lines of credit and borrowing availability with equipment leasing. You will leave your credit lines untouched and ready to use for operational financing needs or unexpected expenses.
  
• When you can't afford the luxury of ownership.
• Owning equipment really is a luxury, and in many cases, an unnecessary one. Equipment leases allow new equipment to pay for itself as you use it over time. Profits are generated by the use rather than the ownership of equipment.
  
• When you're ready for tax benefits instead of loan payments.
• Payments towards your equipment lease may be fully tax-deductible as an operational expense. Tiger Leasing has a Tax Savings Lease Calculator to help you find out the tax benefits of your new equipment lease.
  
• When you have budget limitations.
• In some cases, limited budgets can restrain business owners from purchasing the equipment they need. Equipment leasing allows for quick budget approval thanks to its small monthly expense. A lease can fit even the tightest of budgetary constraints.
  
• When you need to work with a flexible institution.
• Banks are not as flexible as equipment leasing companies. Equipment leasing companies can create an individualized leasing programs for your company.
  
• When you don't have the funds for a down payment.
• Typically the up-front costs for a lease are just the first and last monthly lease payment. Unlike a down payment for a purchase, these payments are smaller and are applied to your total lease payments. Additional fees may apply, but these are minimal when compared to many down payments necessary for purchasing equipment.
  
• When you like to cut through the red tape.
• Working with a reputable lessor is almost always fast and easy. There are simply fewer governmental and legal obstacles to address with an equipment lease. This is especially true if you wish to extend your commitment beyond the typical 12 to 36 months.
  
• The equipment will depreciate in value quickly.
• You can arrange at the end of your lease to purchase the equipment for its fair market value (or an agreed upon amount), continue leasing, lease new equipment or return it.

Equipment Leasing and Credit Scores

Equipment leasing goes hand in hand with credit scores. When you apply for a lease, you're hoping for a quick approval, not an extensive investigation. Understanding what equipment leasing companies are looking for from your application is the first step in strengthening your leasing application. At Tiger Leasing , we compile information from different credit reporting sources. For a more specific look at what Tiger Leasing takes into account when considering leasing application, please read our Credit Scores and the Lease Approval Process.

We utilize the Dun & Bradstreet Report to learn more about your company and its payment history. When evaluating your application, we take into account your PAYDEX score, the higher your PAYDEX score, the better!

When businesses are closely held, Tiger Leasing will look at credit bureau reports on individual owners. These credit bureau reports give us an idea of payment histories and outstanding borrowings. Tiger Leasing uses the Experian credit reporting bureau for a report that calculates a FICO score. As with the PAYDEX score, the higher your credit score, the better your chances of securing a lease with us.

Tiger Leasing encourages all businesses and individuals to check your credit report periodically for errors. According to recent studies, almost 80% of credit reports contain errors and almost 25% have mistakes serious enough to cause consumers to be denied credit.

Tiger Leasing relies on credit scores when evaluating potential leasing applications, though they are not the only factor we consider. Your business history, professional experience and cash reserves are also taken into account. At Tiger Leasing, we strive to discuss every aspect of our leasing applications with potential customers, pointing out both the good and bad information we find. Our goal is to make the application process a smooth one, so you can attain the equipment your business needs.

Work with Industry Leaders

Recently, a law firm that was moving their offices came to Tiger Leasing looking for an equipment lease for furniture and computer equipment. The law firm is a strong company and had a substantial line of credit in place with their local bank. Tiger was asked to quote a rate for the lease of office furniture and computer equipment, and the law firm told our team to "come up with the lowest rate because you are competing with our bank."

Thanks to our previous experience and knowledge of the field, we knew that the firm was probably commanding a rate of a point or two above prime. How could Tiger compete with a rate of 5% or possibly lower? Quite simply, we couldn't. We had to look outside of the box to come up with a creative solution. We presented what we could offer as a compliment to their bank line. Understanding the big picture, and having the experience to see what the law firm needed allowed us to come up with a plan.

The firm was going to incur heavy costs in the construction of their new space as well as in the acquisition of new equipment. With every conversation, the managing partner kept mentioning rate and Tiger Leasing kept focusing on the unforeseen costs that we've seen arise before in these situations, and the need for keeping their credit line available. Our work with similar clients in the past allowed us to recognize the issues the firm could run into in the future.

In the end, the managing partner decided that the low rate on his bank line was important but so was the need to keep some of his line available for future use. He used some available cash as well as part of his bank line to buy some of his equipment and engaged us to lease approximately 60% of his equipment budget. He realized that his "blended rate" - the average rate he was paying between his bank rate and my rate - was extremely competitive and he still had a comfortable cushion of bank borrowing available to him if he needed it in the future.

At Tiger Leasing, we have the experience to understand the big picture. Many people only look at the bottom line, or the initial price point, when in reality other factors need to be considered. Leasing allows companies like this law firm the ability to conserve their cash and working capital. Their resources are not all tied up in the equipment and construction purchases, so money will be available to them for unexpected setbacks, marketing, working capital, or other cash needs.

It is important to trust the people you do business with. Look for the industry leaders that will be able to look at your big picture and help you find the best solutions. When you're so focused on your company, it's good to have other professionals looking out for you as well. Research your options, understand your company's needs and limitations, and work with the companies that are leaders in their field.

Tiger Leasing Equipment Lease Calculator

The Tiger Leasing Equipment Lease Calculator - LeaseCalc™ is a valuable tool for those looking to determine the approximate monthly payment on the equipment they are acquiring. While your actual monthly payment may be higher or lower than what is displayed on the equipment lease calculator due to credit score review or other factors, the Tiger Leasing Equipment Lease Calculator will give you an approximate monthly payment so you can begin to see how the equipment will fit into your budget.

Tiger Leasing offers step by step instructions on how to use the LeaseCalc™ so you can evaluate how equipment leasing can work for you. Equipment Leasing is a great alternative to purchasing the equipment you need to increase your profits. There are plenty of Benefits to Leasing. How would your company benefit from new equipment? Use the Tiger Leasing Equipment Lease Calculator - LeaseCalc™ and discover how much it would take to lease the equipment you need. For more precise information, you can always contact a Tiger Leasing representative by phone at (212) 791-2250 or by sending an email to info@tigerleasing.com.

Grow Wisely

Companies need to be creative to increase their sales and their profits. The struggle most companies face is how to spend money wisely in order to generate an increase in future cash flows. Re-investing in your own company is crucial to your business. Figuring out how and where to spend the money most effectively can be a challenge. Tiger Leasing has put together some tips to help you grow wisely.

Budget Wisely -
Figure out how much you have, and how much you need to spend on the necessities in the near future before deciding how much you want to spend. Check out your loan and financing options. Know your limits, your credit score, and your D&B rating.

Choose Wisely -
After deciding how much you have, it's time to decide how to spend. Figuring out what your company needs is no easy task. You want the largest possible return on investment, and you want it as soon as possible. Do you need new computers, or a larger staff? Would new software help you be more efficient, or would it make more sense to buy new machinery? Whether you're looking to produce a new product, or to relocate to a new location, you have decisions to make. Brainstorm with others and decide which assets warrant your investment, and which you can do without. A new staff member may be a welcome addition, but what if you can do the work faster and easier with new technology, instead of having to hire, train, and pay a new person?

Research Wisely -
Once you've decided which resources to pursue, do your research. Don't just focus on getting the best deal in the sales room, look for other options. Did you know that leasing lets you conserve your cash by paying only for what you use? There are tax benefits for companies who lease as well. Use the LeaseCalc to figure out your monthly payments. Get all the information before committing to your investment.

Grow Wisely -
It isn't always easy to recognize what the best "next step" for your company is, but it's important to take the time to figure it out. With all the pressure to grow and expand to stay competitive, irrational decisions and purchases can do more harm than ever. Decide what you want to spend, what you need to grow, and research how to get what it is you need in a way that works best for you. You have more options than ever before, take advantage of them.

Tax Deductions for Equipment Attainment

Business owners who acquire equipment for their business: machinery, computers, software, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This deduction is known by its section in the tax code, a Section 179 deduction. Under Section 179, businesses that spend less than $800,000 a year on qualified equipment, can write off up to $250,000 in 2009. The rules are designed for small companies, so the $250,000 deduction phases out when a business purchases more than $800,000 in one year.

For an illustration of how Section 179 can reduce the cost of acquiring equipment, go to the Tiger Leasing Tax Savings Lease Calculator.

What will happen in 2010 is anyone's guess. Politicians in Washington have not yet decided on what will happen to this provision in the tax code. So business owners should take advantage of it now, while it is available. They can further leverage this benefit by using a lease to spread the cash outlay over a period as long as five years.

The Credit Squeeze and Small Businesses

Lately, there has been a lot of attention given to the "credit squeeze" and how it's affecting small businesses. Anyone operating a business has to be a little unnerved reading headlines such as "Small U.S. firms face Credit Squeeze as Crisis Drags", "Banks Cutting Back on Loans to Businesses", and "Away From Wall Street, Credit Keeps Contracting".

Bankers are scared and rightly so - delinquencies continue to be on the rise and bank balance sheets have been damaged. So banks are only lending to their most credit worthy borrowers. Too often, the most credit worthy borrowers are determined to be the larger companies. Small businesses are left out in the cold. This has resulted in too many small businesses scrapping plans for expansion, or even having to close their doors for good.

When banks aren't willing to lend the money necessary for investing in new resources, it's time to find other alternatives. Small businesses do have options when it comes to increasing their business in these uncertain times. Tiger Leasing has put together the top 10 reasons why leasing is smarter than borrowing from a bank. Leasing companies have available lines of credit from a multiple of banks and other lenders. If you are a small business that has been in existence for at least two to three years and you as an owner have good personal credit, then it is likely that an equipment lease can be arranged quickly at very reasonable terms.

Equipment leasing allows you to acquire new machinery, software, technology, furniture, or whatever kind of equipment you need.Financing terms can be arranged that best fit your budget. The benefits of leasing are powerful, and can open up doors you may have believed were closed to your small business. Don't let the credit squeeze stand in your way.

With an uncertain economy it is important to find creative ways to keep your business running efficiently. Equipment leasing is one such way. Get innovative. Look outside the box. Get the information and facts to work around any road blocks the credit squeeze has put in front of your company's growth.

How Equipment Leasing Began

Equipment Leasing has become a permanent fixture in business today, but how did it all start? When did equipment leasing become so important, and who is responsible for the practice? Leasing has a long and interesting history; we've put together the basics to give you an idea of where Tiger Leasing came from.

In 1984, clay tablets were found that provided evidence that equipment leasing has been around since 2010 B.C. In the ancient city of Ur, priests, who were governing the city, were leasing equipment and tools to farmers in the area. Leasing was not isolated to UR though, as proof of leasing has been found in ancient Babylonia, Egypt, Greece and Rome as well.

Here in America, equipment leasing has been around since the 1700's. Horses, buggies and wagons were leased to farmers, travelers and others. In the late 1800's, leased barges, locomotives and railroad cars helped build our country. Vendor leasing appears to have first appeared in America in the 1920's. In the 20's, companies were marketing their equipment by offering consumers the option to purchase equipment on an installment plan. These offers were presented to financing companies and banks at a discounted rate, allowing for vendor leasing to take root.

World War II was an important time for the leasing industry. Companies were looking for ways to attain assets and resources, without spending a ton of money on investments that wouldn't be as in demand once the war was over. At this point in leasing history, more sophisticated forms of leases began to develop. And the industry as a whole took off.

In 1954, the U.S. Leasing Corporation was the first company to take on the all-purpose equipment leasing that we have come to expect in today's business world. Though many things have changed since 1954, including tax laws, business models, accounting practices and more, the core of equipment leasing is still the same.

Much like the farmers and priests in 2010 B.C. Ur, equipment leasing is still offering companies an alternative to purchasing equipment. Leasing is still providing growing companies with the resources and technology they need to grow and thrive in our economy. There is no doubt the industry will continue changing, to better the lives of entrepreneurs and businesses, but at the core, equipment leasing will remain a reliable means for companies to grow.

Welcome to the Equipment Leasing Blog

At Tiger Leasing, we structure equipment leasing agreements and customized financing programs for growing businesses. Through working with expanding businesses, and growing our own business at the same time, we have lots of information, advice and tips for business owners, and anyone interested in learning more about the business world. From our specialty, equipment leasing, to more general business advice, this blog is the place to get great ideas.

Here at Tiger, we know equipment leasing. Our staff has experience creating customized leasing packages that include medical equipment, computers and software, restaurant equipment, heavy machinery, furniture, telephone equipment and so much more. We work with a number of equipment vendors and businesses to ensure that we can provide the resources and equipment many types of growing businesses need. Our diverse work in the field will allow us to share great information with you in our Equipment Leasing section of this blog.

Within the Business Tips category, you will find posts to help you understand the business world. We'll be covering broad business concepts, giving you ideas on how to grow your company, stay competitive, and become a more informed business person. We'll be sharing with you some great marketing and sales ideas, tips on how to expand a business, information about HR topics and advice on dealing with coworkers and employees. The Business Tips category will be full of resources and support for those looking to learn more about the business world.

Tiger Leasing's Business Equipment Network (otherwise known as BEN) allows you to compare different pricing and service offerings to ensure that you're getting the best deal on whatever equipment needs you face. The BEN category will feature posts focusing on how our comparison service allows companies to make the most from their investments. Be sure to also check out the Business Equipment Network Group on Facebook.

Everyone needs a break sometimes, and Tiger Leasing understands that. The Life is Fun category will feature blog posts that focus on making time for something fun. Whether it's a simple way to relax at your desk or some great ways to celebrate your coworkers, this section will hopefully bring a smile to your face. It is our hope that people remember to take some time every day to have a little fun, and the Life is Fun category is our way of helping people do just that.

Tiger Leasing, LLC is an independent equipment leasing company headquartered in New York City. The professionals that make up our team are dedicated to providing customized commercial leasing programs that meet the needs of growing companies. The Tiger Leasing News category was created in hopes of keeping our Blog readers up to date on the exciting things going on at our company.

Overall, the Equipment Leasing Blog is our way of sharing our experience, knowledge and insight with you. We hope you check back often, as we'll be regularly adding posts. Please post a comment and let us know your thoughts on any given topic, or let us know what you'd like to hear about. We're very excited about the premiere of our Blog, and we hope you are too!