Conservation of capital: The capital conserved while leasing art as an operating expense can be utilized for other capital expenditures.
Conservation of credit: A lease is not a loan. Borrowing reduces lines of credit. Leasing is an operating expense and hence allows the customer increased borrowing capacity.
Off-balance-sheet financing: An operating lease keeps the debt and the corresponding asset, off the company’s balance sheet. Therefore, borrowing debt covenants are circumvented, financial ratios are enhanced, and borrowing capacity is increased.
Tax benefits: An operating lease may allow 100% of the monthly payment to be included as an operating expense. Bank financing would allow only the interest costs to be included as operating expenses. Check with your tax advisor to determine how this may lower pre-tax income and reduce taxes.
Flexible financing: Leasing provides fixed rate financing with specially structured terms to accommodate the specific needs of your company.
Flexible lease structure: Abbozzo Gallery offers flexible leasing options to meet your business’ unique needs.
SAMPLE PLAN 1
Artwork price before sales tax: C$ 3,000.00 Monthly payment before sales taxes in the province where you live