| Leasing through Bremer is an attractive way to acquire farm equipment. It helps you get the most out of your available capital. Leasing can offer you the flexibility to structure your acquisition to meet your objectives and stay within your budget.
Advantages
The advantages your company may derive from leasing are determined by your specific financial needs and objectives. The benefits of leasing include: |
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Call 1-800-908-BANK (2265) to learn more about Bremer's Agriculture leasing programs.
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Lower initial cash outlay
Generally, only the first payment is due at the time of acquisition. This compares with conventional financing that typically requires 10-25% down-payment. Tax Savings Lease payments may be treated as fully deductible expenses for tax purposes. This may provide a more rapid write-off than is available by owning the assets.
Improved cash flow
Leases can be structured based on the useful life of the assets, which may provide longer terms and lower payments than available with a loan.
Simplified budgeting
Lease payments are generally fixed, eliminating the need to estimate interest and depreciation costs.
Increased Flexibility
Lease payments can be structured to match your cash flow or seasonal business patterns, providing you with greater financial flexibility.
Manage budget restrictions
By leasing needed assets you are able to manage capital budget restrictions.
Improved presentation of financial results
Leases can be structured so they are not reported on your balance sheet as an asset or liability, which can improve leverage ratios or enhance profitability ratios.
Expanded credit alternatives
Leases may allow you to acquire needed assets without disturbing existing loan agreements or depleting credit lines.
Increase future flexibility
At the end of the lease, you may have the option to purchase the asset, renew the lease for an additional term or return the asset if it no longer meets your needs.
Lease Products
True Lease - Tax Lease
This lease is structured with Bremer (lessor) maintaining the risks of ownership of the leased equipment, including the tax benefits of depreciation. You (lessee) treat the lease payments as an operating expense.
Lease Purchase - Non Tax Lease
This lease is structured with you (lessee) being treated as the owner of the asset for income tax and financial reporting purposes, but not becoming the legal owner of the asset until all terms of the lease agreement are satisfied.
Types of Leases
- Agricultural Equipment
- Trucks & Trailers
- Transportation Equipment
- Manufacturing Equipment
- Other