A Compensation And Benefit Proposal For Equipment Leasing

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A Compensation and Benefit Proposal for Equipment Leasing
Tim Bowles
OMM-618 Strategic Management in Human Resources Management
Prof. Maja Zelihic
April 27, 2015


There are benefits to commercial leasing. When you lease, you avoid large cash outlays with a down payment. In addition, leasing payments are tax deductible. “Along with the tax advantages, commercial equipment leasing does not affect your business credit”. When you lease, the equipment pays for itself while generating revenues. Leasing saves working capital, it converts a large cash purchase into a low, affordable, tax-deductible monthly payment. It eases the strain on your working capital by providing 100% financing. Meaning you has more funds available for things like payroll, advertising and other expansion efforts.
“Commercial equipment leasing, unlike a bank loans, requires no down payment. Taxes, delivery, service contracts, and other soft costs not typically financed by a bank, can be included in the cost of the lease. One or two payments in advance are usually all that is required. Many business owners with a low credit score find it difficult to obtain financing for their businesses. Some equipment leasing companies have special credit, equipment lease programs that cater to every business owner” (, 2013).
“Startup businesses can be hard to finance. Most banks want to see 2 – 3 years of business tax returns before they are willing to finance a new

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