Signtronix Sign Company

However says Signtronix Signs, businesses can now depreciate 100% of the value of the asset in the first year!!!  Again, this is a non-cash expense on the income statement (100% depreciation the first year with only one-third or one-fourth of the asset paid - not bad!)

Therefore, in response to the customer who says he pays cash for everything, tell the customer that he can depreciate 100% of the (lease) price of the sign as “Depreciation Expense” on his income statement, which is a non-cash expense.

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 after the first year is money the client would pay in income taxes anyway.

Signtronix Signs - By the time an asset was paid/adjusted/and depreciated, 75% of that asset was paid by what normally was paid in income taxes over 3 to 10 years.  Section 179 of the current Tax Code states that a “Fair Market Value” lease can be capitalized on the balance sheet as a “Fixed Asset,” namely, “Sign.”

LEASE PURCHASE PAYMENTS are treated as a “Liability,” similar to a mortgage payment - which also remains on the balance sheet (as opposed to the income statement).  Only the monthly payment goes on the income statement as an “Expense.”

When Signtronix asked to write this article about leasing, it frankly had been a long time since I last worked with the accounting debits and credits of leasing.  But, in researching the current Tax Codes against the old Tax Codes that I worked with, I found that the new Tax Codes are even better.  Under the old Tax Codes, a business could expense the lease at 100% on the income statement as “Advertising Expense.”  That reduces the taxable income and saves the taxpayer businessman about 25% of the value of the asset from being paid in income taxes.

At this point, this gets a bit heavy, but it’s worth paying close attention.  After the lease expired, a business could then adjust the “Retained Earnings” and income statement and capitalize the sign on the balance sheet under “Fixed Assets,” i.e., “Sign” at the total value paid by the lease.  Then, that business would depreciate 200% of that value back on the income statement as an expense that didn’t even involve cash.  That would further reduce taxable income.

Continue Signtronix Sign Lease - THE SECOND BEST SIDE-EFFECT of leasing that is overlooked is that 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 that would not be possible if the business uses all its cash to buy a sign.  Inventory can be turned into cash - but only if the business has the inventory in the first place.

Therefore, the sign will increase business income that will be paid by the “NEW’ increased cash flow.  Plus, the business has more money to buy inventory, which, in turn, creates “NEW” income since that business isn’t using all its cash to buy a sign.

More discussion on sign leasing from Signtronix:

 Rule 2) most important of all, leasing is designed for capital investment to be paid partially by tax incentives authorized by the Tax Code.  With that in mind, one must be mindful that tax evasion is a felony; and, one could land in jail.  On the other hand, tax avoidance is GOOD BUSINESS and authorized by the IRS with the full sanction of the U.S. Congress to help businesses make capital purchases that stimulate the economy.

THE BEST SIDE-EFFECT of leasing that is most often overlooked is that a lease does not affect a borrower’s ability to qualify for other loans.  Only a single monthly payment is reported as a liability against the borrower.  So, when a client says he can’t buy a sign today because he’s trying to qualify for a big loan, let the client know that the sign will only cause a $100 liability (or whatever the monthly lease price is) if he leases the sign.

Thanks to the purchase of our new Signtronix lighted sign, our evening
sales have increased. We purchased the restaurant last year, and the
first sign we bought just had our name on it and didn’t even tell what
type of business we were. The salesman for Signtronix, Mr. Peach, was
very helpful in designing a new Signtronix sign for us. The Signtronix
sign was delivered ahead of schedule and we have received many
compliments.

Sincerely,
Casandra Potter
The Depot Restauranct
Jonesboro, AR

Signtronix on sign leasing - In the late 70s & early 80s when the economy slumped, lease/purchase tax laws were re-designed to improve business to such an extent that other “financing” options wern’t considered.

Rule 1) if something makes a business money, the business should lease that item.  In our profit picture, we convince the customers that a sign makes them money; then, it should be leased and paid from the increased cash flow attributed to the sign.

The folks at Signtronix recognize that many businesses can’t necessarily pay for the sign in its entirety right away.  That’s why we’ve developed our Signtronix Smart Lease program.  This is a lease-to-own program that let’s you pay for your sign over a two, three or even four year period.  All you need to do is put a deposit down and then make small monthly payments over the period of time you choose.  Your new Signtronix sign will be paid for before the end of your payment program because of the new customers and revenue you’ll be bringing in as a direct result of the sign

Signtronix can send you actual photographs and letters from customers who do have our signs.  You’re not alone when it comes to expenses, whether planned or unforeseen, that the business needs to tackle.  It may be the need to fix a leaky roof or the purchase of a new audio system.  All locations have something that needs to be purchased.  When a new Signtronix sign is put into the mix of things to purchase for the business, some people claim it should be low on the priority list.  This is the opposite of what your location should do!  The new outdoor sign should rocket to the top of the priority list of things to spend for the business.  Why?  Because the new sign is an INVESTMENT into the future growth of the location. 

The new sign is the single-most important tool to get newpeople and new funds into the business.  Those new funds are what will help the company pay for the other items on the “to do” list, but you’ll now get them done much quicker because of the growth of your location as a result of your new sign by Signtronix.

Over 40 years ago Signtronix developed a foolproof method for installing our signs.  We found a way to make it a simple ABC installation that can be completed by anybody and it saves a ton of money!  We determine the type of installation you want (on a monument, on the business wall, on a higher pole, etc.) and then attach all of the mounting brackets to the sign, right here in our manufacturing plant. 

We include instructions that give you a simple step-by-step procedure for installing it.  Most of the business get volunteers  and make it a project.  It’s simple and saves you a lot of money.We also provide an installation kit for monument style installations with detailed instructions on how to install the sign.  It’s very quick and easy to do!  Remember, installing the sign is no problem, finding something worthinstalling is the biggest problem.I have to wait awhile before I get a sign.  Signtronix comments, the dictionary describes the word “wait” as “to remain undone”.  I’m sure you didn’t get this far with your church by allowing things to remain undone.  Besides, each day you wait will cost you new members and the accompanying tithing they give to your church. 

Your location is around so you can spread the word to as many people as you can… but it takes money to run your business and make it grow and flourish.  As you saw in the Return On Investment scenario, a Signtronix sign is an investment that is designed to bring in new people and makes a business more money.  The longer you wait to put up your new sign, you lose the opportunity to bring in new members and obtain the needed funds for the location.