What is a Lease?
How does it work?
A Lease is a contract in which the
owner of an asset (the Lessor) conveys use of the asset to another party (the lessee) for a specified period of time at a predetermined monthly rate.
Almost any type of equipment can be Leased. You select the equipment needed by working with vendors or manufacturers, to establish your cost for the
equipment. Contact LeaseSouth, and together we will determine the best options to acquire the equipment. You may Lease one piece of equipment at a time
or many items with a single Lease. By signing the Lease, you assign its purchase rights to the Lessor, who then buys the equipment as specified by you.
When the equipment is delivered, you will make sure it meets all specifications and sign a formal acceptance. The Lessor pays for the equipment, and
the Lease is placed in effect. As a method of acquiring equipment, you’ll find Leasing relatively simple. It amounts to a rental agreement that is structured
to meet your company's special needs. As the Lessee, you and the lessor should consider the following factors to determine the most effective type of
Lease for your company: What do you intend to do with the equipment at the end of the Lease; your tax situation; your case flow; and your company's
specific needs as they relate to future growth. Further, your needs will determine what happens at the end of the Lease. As a Lessee, your options include:
returning the equipment to the Lessor; purchasing the equipment at a fair market value; or renewing the Lease.
Business 101 - Lease assets that depreciate and Buy assets that appreciate.