October 26, 2004   3400 Dundee Road · Suite #180 · Northbrook, IL 60062 �(800) 866 6396
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Leasing Overview      
 
  Leasing Overview

Every company is different, and so is every lease CHD Leasing writes for its customers. It all depends upon the analysis of your business and tax needs. For example, the following are two types of leases that you can use to meet you objectives.

Operating Leases

If cash flow and lease payment amount are critical, we might suggest a true, or operating lease. An operating lease is considered an "off-balance sheet" liability and contains a provision to purchase the equipment at the end of the lease for market value. An operating lease is also particularly advantageous to the customer if the lease is for computer systems or high-tech equipment, because of the usage flexibility it allows. Further, it can work to the customer�s benefit for tax purposes because the payments may be deducted as an operating expense.

Capital Leases

If long-term ownership of the equipment is your goal, a capital lease might be your best choice. Similar to a bank loan, it would be categorized on your balance sheet as a long-term liability, with interest expense on your income statement. At the end of your lease, you can purchase the equipment for a modest sum. Most purchase options range from $1 to 10% of equipment cost.
There are many different lease combinations that can be put together to fit the vast number of different needs our customers have. CHD Leasing understands that every customer is different, and our leasing specialists will work with you to meet your needs.


For more information about leasing, feel free to browse the rest of our leasing overview: