The preferred lender for Advanced Retail Management Systems, Inc., is Bill Jennings of Lease Western, Inc. Bill has assisted our POS system customers since 1992. You can contact Bill at 303-768-8930 or 800-451-8435 or leasewestern@comcast.net. Bill will be happy to answer your questions and tailor a financing plan to meet your needs. Bill is a Certified Lease Professional, one of 210 in the U.S.
Lower your true cost of the POS System through tax savings.
The 2009 Economic Stimulus law permits the depreciation deduction for the first $250,000 in equipment/software purchases. The deduction is on your personal tax return if you are a sole proprietorship, LLC or S Corp. This deduction helps offset other income on your personal tax return. If the deduction exceeds your income, the extra carries forward to the next year. If you are in a 30% tax bracket, a $100,000 POS system will save you $30,000 in taxes for a net system cost of $70,000.
Don’t Tie up Your Capital.
Lease financing allows you to preserve your capital for the growth of your business or to reserve for contingencies. You should analyze your return on your own capital and compare to the cost of leasing. For instance if you invested $200,000 in your business and your net income is $30,000, that is a return on your capital of 15%. Save your cash and use 100% lease financing.
Assuming you are earning a 15% on your capital, a cash investment of $25,000 for a POS System equals a future value of $52,679 in five years or $878 per month. You can lease for $558/mo with a 10% purchase option at the end of 60 months.
Time Value of Money for $25,000 POS System
| Lease Versus Cash | 15% return | Monthly cost |
| Cash Investment | $52,679 | $878 |
| Cost of Leasing 60@$558 | $33,480* | $558 |
| Gain by Leasing | $19,199 | $320 |
*10% purchase option not included in total
Impact on Borrowing. Save your cash and your bank line for items you cannot lease. When your banker reviews your financial statement, a $25,000 cash asset looks much stronger than a $25,000 POS system. If your banker allows your company to borrow 6 times equity, a $25,000 reduction in cash could reduce your borrowing ability by $150,000(6 X $25,000). Your down payment with lease financing is one or two payments. With no cash tied up in your equipment you can continue to have your cash working for you and enjoy the benefits of a new POS system.
Payment options. Deferred payment plans give you time to fully implement your POS system before payments commence. Deferred payment periods from three to six months are available. Seasonal payment plans can also be structured.
Give yourself the Competitive Edge with the Latest Technology. Buy today’s equipment with tomorrow’s dollars. If you are not upgrading your technology, you are falling behind your competition. The benefits of new equipment combined with the tax savings should far exceed your low monthly lease payments. You can include the entire POS system cost including installation, training and freight in one low monthly payment.
Credit Requirements. For companies over two years in business, a one page application is all that is required for up to $50,000.
