Some benefits of leasing...
- Creates Jobs
- Enhances Lives
- Enables companies to have the latest equipment
- Consistent expenses in budget planning
- Customized solutions
- Lower costs
- Increased cash flow
- No down payment
- Transfer of risk to lessor
Leasing Equips America
Equipment Leasing and Finance Provides Value to U.S. Businesses and Communities
- Leasing Enhances American Lives
- Leasing is Good for the Economy
- Leasing Fuels Start-ups and Advances America's Small Businesses
- Leasing's Popularity is Growing
- What Equipment Can Be Leased and Financed?
- Total Annual Leased Volume By Equipment Type Graph (in new window)
- About ELA
Leasing Enhances American Lives
A hospital in a major metropolitan area needed to upgrade medical equipment to provide reliable diagnostic patient care and service. But laying out hundreds of thousands of dollars in cash for a new MRI and CAT scan was not a viable option - who can afford to buy high-cost equipment that quickly can become outdated? The hospital found the solution to its dilemma in equipment leasing. Consider what this means for community members who need medical care: faster, more accurate diagnoses at their local hospital. Leasing critical medical equipment, from heart monitors to CAT Scanners to MRI machines, helps the hospital better serve its patients.
The medical industry is just one of many areas where Americans see the benefits of leasing. Businesses of all sizes, in every industry, lease equipment to ensure they're using updated technology. As an alternative to tying up capital in equipment purchases, leasing helps companies maintain their cash, and offers a rapid solution ideal for today's fast-paced business world. The leasing of otherwise cost-prohibitive equipment increases worker productivity, making companies more competitive.
Take your own office, for example. If you look around at your furniture, postage machines, copiers and printers, you're more than likely looking at leased equipment. In fact, nearly half of all office equipment is leased! That means better printers, computers and instant communication in your work environment, without tying up capital needed for more productive investment. But it doesn't stop there. School districts spend funds wisely by leasing school buses, providing students with a new, safe and reliable means of transportation. Leasing allows local government bodies to acquire police car fleets, ambulances, and state-of-the-art 911 emergency equipment to better serve and protect their communities.
Leasing is Good for the Economy
Global Insight has released a new study, The Economic Contribution of the Equipment Leasing Industry to the U.S. Economy: Growth, Investment, Jobs, that explains the impact the equipment leasing and finance industry has on the U.S. economy and jobs. The study was conducted by Global Insight, a global economic and financial forecasting company, at the request of the Equipment Leasing Association (ELA) in June 2005 as a method to quantify the importance of equipment lease financing beyond its own marketplace. A copy of the full study may be found at:
http://www.elaonline.com/research/PDFs/ELAEconContrib05.pdf (884kb PDF File)
The study uses econometric models that in order to show the range of effects the potential absence of leasing would have on the economy: in effect the best/worst-case scenarios. The results of the study show that, annually, over the 1997-2004 period, the equipment leasing industry's effect on the economy:
- Produced at minimum $75 billion and as much as $315 billion additional real GDP.
- Produced at minimum $160 billion and as much as $240 billion additional real equipment investment.
- Created at minimum three million jobs, and as many as seven million additional jobs.
Leasing Fuels Start-ups and Advances America's Small Businesses
Across the U.S., growing companies achieve their business goals, improve cash balance and decrease maintenance costs through equipment leasing. Farmers can optimize their harvesting and planting by upgrading tractors and reapers. Innovative software startups can afford the sophisticated development equipment crucial to their success. Restaurateurs lease everything from furniture to bar equipment to ice machines to grills and energy efficient food warmers.
A survey of 2005 SBA Small Business Person of the Year award winners found that seventy percent lease at least some of their equipment. Why? Leasing enables companies to control their monthly costs through a set lease payment - a prime benefit to small businesses trying to weather changes in interest rates, inflation and business volume. Other considerations that lead small businesses to lease equipment include interest rates, disproportionate growth in technology requirements, cash flow and dollar value inflation rates.
Leasing's Popularity is Growing
In 2006, equipment leasing is forecasted to be a $225 billion industry, up from $218 billion in 2004.
What Equipment Can Be Leased and Financed?
More than you might expect! Virtually every U.S. industry leases and finances a broad range of equipment, ranging from computer laptops to jumbo jets.
Here is a small sampling:
Organized in 1961, the Equipment Leasing Association (ELA) is the premier non-profit association representing companies involved in the dynamic equipment leasing and finance industry to the business community, government and media. As the voice of the leasing industry, which is directly responsible for generating a minimum of three million jobs and $75 billion in GDP to the economy annually, ELA promotes the forecasted $225 billion industry as a major source of funds for capital investment in the United States and abroad. Headquartered in Arlington, VA, ELA has more than 750 member companies and a staff of 25 professionals.
For more information, visit ELA Online.