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Leasing Advantages
First Leasing Bank provides a fast and convenient source of capital which allows the lessee to preserve working capital and debt capacity. Depending on the structure, a lease may be ‘off balance sheet’ and improve key financial ratios. As opposed to traditional financing, FLB will finance up to 100% of the asset without compensating balances or requirements for additional business. The Bank will finance the asset for the entire term of use (typically two to five years) without requiring periodic renegotiation of terms.
In the case of an operating lease, the lessee only pays for the time period the asset is required. Thus the Bank assumes the risk of obsolescence, resale or disposal. At the end of the term, the lessee typically has three options: Firstly, to return the equipment; secondly, to purchase the equipment or thirdly, to renew the lease for a newly agreed-upon term and rental amount.
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