Signtronix-A lease does not affect a borrower’s ability
Some Highlights from this Signtronix:
• Items you may want to mention to customers when talking about benefits of leasing:
• A lease does not affect a borrower’s ability to qualify for other loans.· A low monthly payment (that is paid by the increased cash flow) relieves the pressure of the business to be able to add more inventory.
• The old Tax Codes allowed leases to be expensed as advertising on the income statement. After being paid-off, the lease could be “adjusted” and capitalized; which, in turn could be depreciated at 200% on the income statement.
• The new Tax Codes are even better.
• In response to the customer who says he pays cash for everything, tell the customer that he can now depreciate 100% of the (lease) price of the sign immediately. Simultaneously, he only writes a check for one-fourth or one-third of the actual (lease) cost. This is better than paying cash for everything. All succeeding payments become money that would be paid in income taxes anyway.
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