Kisco Leasing Co LLC

Description

KISCO Leasing Company 603 North Avenue H Haskell, TX 79521 Toll-Free: (866) 226-6730 Phone: (940) 864-3652 Hours: 8:00 a.m. to 6:00 p.m. Monday through Friday Benefits Tax Treatment and Benefits Appropriately structured leases are considered a tax-deductible expense, which allows you to deduct, for tax purposes, the entire amount of the lease payment from your gross income. 100% Financing Typically, 100% of the cash price of an item is leased, which allows cash normally used for a down payment to be invested in more revenue-generating activity. No Additional Collateral Required Collateral and/or security in addition to the leased item is not typically required, which preserves existing conventional financing relationships. Cash Flow Preservation Since no down payment is required, working capital is preserved. In addition, lease payments are typically lower than loan payments, which improves ongoing cash flow. Margin Management Leasing matches equipment cost more closely with its use. Additionally, agribusiness's and sophisticated farmers make evaluations based on revenue per unit sold vs. cost per unit. Leasing makes per unit comparisons easier than conventional financing. Immediate Write-Off Leasing allows immediate write-off of the dollars spent. Therefore, equipment does not have to be depreciated over three to seven years, or longer in the case of fixtures. Flexibility and Customized Solutions A lease can be tailored to fit your specific needs, including consideration for cash flow timing, fiscal year end, budget cycle, transaction structure and cyclical fluctuations. Asset Management A lease provides for the use of an item for a specific time period at a fixed payment level. The client may have the option to purchase the asset at the end of the lease for a fixed purchase option, or may decide to return the asset. Balance Sheet Management A properly structured operating lease may be off-balance sheet. Thus, liabilities are not increased on the balance sheet and financial ratios typically improve. Transfer Accommodation Leasing can be used to transfer ownership of an asset at the end of the lease period to a designated heir, saving on estate taxes. Additionally, any ownership changes to a partnership and/or joint venture during the term of the lease are easy to reallocate. Depreciation deductions for owned equipment follow a predetermined schedule. For example, the tax life of movable agricultural equipment totals seven years. It takes eight years to write off the entire cost of the equipment With a lease, you expense the value of the equipment over the term of the lease, usually five years. The shorter write-off period means a larger deduction each year and lower taxable income. Access an Alternative Credit Source Many organizations use a line of credit for operating purposes, and a lease for equipment. Establishing a lease line of credit for equipment diversifies your credit sources, allowing you to use alt of your financing options to your advantage. You should consult an accountant on which type of lease is right for you. What We Can Do On Used And New Equipment: LEASES

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