In-House Leasing


In many cases leasing a sign makes more sense than purchasing it outright. Signs can be a big expense and can often take away working capital that a business needs to operate. The advertising value of your sign is the same whether you own the sign or whether you are using the sign.  With this in mind Silvercrest is pleased to offer leasing as an option in purchasing your sign. We have structured our leasing program with many custom options to suit your needs.    
 
What is a Lease?
 
A lease is a financial transaction that can permit you to conserve cash. A lease agreement rents the asset over a specific period at a fixed payment amount which is reflected in the agreement. This permits the acquisition of required asset while avoiding the outlay of cash.

Why lease versus purchase?
 
There are several advantages to leasing a sign versus purchasing a sign outright. The following is a list of some of these: 

Reduced cost:  A Lease offers you a fixed payment structure that can better fit your budget - compared with variable rate financing that can be unpredictable over the term of a loan. You secure use of the advertising / sign you require at today's rates versus a potentially future escalated rate. Your payments can be tailored toward the use of the sign and not its ownership, thus your cash is leveraged to support working capital requirements.
 
100% financing: There is no down payment required with 100% financing. This makes cash available for use in other areas of your business permitting a more focused approach toward growth. This permits you to leverage the use of the product/services leased to generate revenue and additional cash flow during the lease term.  
 
Credit Preservation: Your existing lines of credit are unutilized which preserves your borrowing capacity. Leases can also be structured without any restrictive covenants.
 
Off-balance sheet financing: Your company's financial ratios - such as ROE (Return on Equity) and ROA (Return on Assets) - look more attractive when you lease versus borrow.
 
Tax advantages: Your lease payments can be structured such they are considered an operating expense, which could permit your payments to be totally tax deductible.
 
Flexible & Convenient: A broad range of services can be covered under lease, such as service/maintenance contracts, insurance, freight, installation, training, and taxes. Leases can be structured creatively to meet your specific business and financial needs.


Cash Flow Considerations
 
A Standard Lease typically requires the first and last payment up-front and then a level monthly payment for the term of the lease. Terms may range from 24 to 60 months.
 
$1.00 Buyout: This option permits purchase of the sign for $1.00 at the end of the lease. This permits the lease to be treated similar to a conditional sales contract. A $1.00 Buyout can be advantageous if you expect the sign to retain its value over the life of the lease and you expect to retain use of the sign thereafter.
 
If leasing your sign sounds like it might be a good option for you, please contact us and we will explain the options and send you a credit application.
 
 


 
2010 Silvercrest Signs


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