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We
are the leading providers of true leasing solutions to
our customers
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Facilitates off-Balance sheet transactions
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P&L management enabling accelerated/deferred write-offs
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Zero risk of obsolescence
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Flexibility return, re-lease, purchase of assets
Why Lease?
There are many reasons why leasing makes more sense than owning or using traditional debt finance. We have identified the 4 most compelling reasons and the logic behind them.
Equipment and Market Risk
A rapidly depreciating asset will soon become obsolete. So absolute ownership seems impractical. Moreover, if you later plan to sell off the used equipment, you may not be able to realise appropriate returns, due to distractions associated with sale of assets and poor or volatile secondary markets.
Application Flexibility
You may need new capacity to fulfill a contract but you don't want the risk and financial burden of holding equipment after the contract is complete. Or your equipment needs may change with time and you would want the flexibility to upgrade, replace or return equipment to meet the changing needs of your business.
Financial Management
Most progressive companies are striving to improve their ROFE (Return on Funds Employed) to achieve top performance on earnings and create shareholder value, requires stringent rationing of the company's balance sheet and shareholder's funds.
Only assets of the most strategic value need to be owned by the company. Here is where a truly Off Balance Sheet GE Operating Lease makes great sense. It combines all the benefits of ownership without the financial "baggage". We will also work closely with your Auditors to ensure that your Lease structure meets the new International Financial Reporting and Accounting standards* .
Rental and Hire agreements are often outside the scope of a company's existing lending covenants. Operating Lease may provide a way to optimize your equipment needs without breaching your covenants.
Reduced Monthly Payments
At GE we understand equipment and sell millions of dollars in assets each year, therefore our Residual Values are often higher than those of our competitors. On a pure monthly cash flow benefit basis, a GE Operating Lease can make a lot of business sense.
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