Leasing Advantages

• Keeps working capital working - not tied up in fixed assets
• Lets the equipment pay for itself from the revenue it generates
• Keeps bank lines of credit open for expansion of receivables and inventories
• Lets you pinpoint equipment costs to specific projects or profit centers
• May offer tax advantages as an operating expense
• Permits the immediate ordering of needed equipment at today's prices
• Allows you all of the benefits of ownership without major cash outlays
• Eliminates depreciation accounting problems and simplifies bookkeeping
• Lets you capitalize on unbudgeted opportunities or emergencies
• Offers numerous payment plans and lease-end options for maximum flexibility
• Provides 100% equipment financing without compensating balances or down payments
• Offers upgradeability to hedge against technology obsolescence.

Obsolescence Protection:

Today’s wireless & barcode equipment is constantly changing, making the equipment obsolete from the moment of purchase. SMS Leasing can help provide protection against technology obsolescence through its leasing programs and innovative service offerings. You will never get locked in to using obsolete equipment because of book losses from disposing of depreciable assets.

Flexibility:

SMS Leasing offers flexible structures that include variable lease payments, purchase or renewal options, equipment upgrades and/or early termination.

Off-Balance-Sheet Financing:

Your lease with SMS Leasing may qualify as an operating lease. SMS will help structure your lease so that debt and depreciable assets do not appear on your balance sheet. This in turn allows companies to conserve borrowing power for expansion, renovations, mergers or acquisitions. In addition, it may also allow you to write off the full payment as a tax deductible expense.

Minimizing Cost, Risk & Uncertainty:

For many businesses, leasing is an important financial tool that helps minimize the cost and risk of equipment acquisitions. Ownership carries numerous risks, including diminished flexibility, risk of technology obsolescence, and uncertain useful lives, remarketing values and disposal costs. SMS Leasing lets you transfer ownership risks to the Lessor, while providing access to the technology needed.

Environmental Issues:

Should you decide to dispose of wireless & barcode equipment, you could be considered a generator of hazardous waste under the Resource Conservation and Recovery Act. For example, an average 15-inch monitor contains over 1.5 lbs. of lead as well as other hazardous materials such as barium. Printed circuit boards harbor lead, mercury, arsenic and flame-retardant chemicals. Proper disposal of leased equipment becomes the responsibility of the Lessor.

Lower Total Cost Of Ownership:

Even if you think you might keep your equipment beyond the term of the lease, the total cost of the payments plus the fair market value of the equipment at the end of the lease term is commonly less than the purchase price of the equipment plus your cost of capital. Leasing also allows you to avoid disposal costs, asset tracking and property tax administration. Obsolete equipment has increased failure rates, software compatibility issues are more common, maintenance and support costs increase dramatically. Administratively, retaining obsolete equipment requires supporting multiple hardware platforms and software versions.

Tax Advantages:

Under Federal income tax depreciation rules, wireless & barcode equipment must be depreciated over a five-year useful life. This is typically one-half year in the year of acquisition, four full years, and one-half year in the final year. As a result, it takes six years to receive all of the tax deductions. True lease payments are generally deductible when paid over the typically shorter lease term, potentially resulting in accelerated tax deductions.

Options & Lease Structures:

SMS Leasing is the easiest way to get the wireless & barcode equipment and financing you need at competitive rates. We can help you develop custom lease structures that achieve your financial and technological objectives. These include structures to allow you to begin the lease with lower payments (or even no payments at all) to accommodate the unique requirement of your business, such as the current availability of budget dollars or the ability to match revenues to payments.