PAR Finance

101 South Salina Street
Suite 1020
Syracuse, NY 13202
Phone (800) 875-0138
Fax (800) 869-0071
email  dkidney@parfinancecorp.com

Prism Customers may finance the acquisition of equipment for their business by leasing it from Par Finance under one of their flexible lease plans. A leasing professional from Par Finance will help you select the most cost-effective plan to meet your unique requirements.

What is a lease?

A lease is a written agreement between an equipment user ("Lessee") and a financing company ("Lessor".) It provides for the Lessor to purchase equipment and the Lessee to use the equipment for a short period of time, during which the Lessee pays rent to the Lessor. The Lessor usually owns the equipment during the term of the Lease. At the end of the Lease term, the Lessee usually has the option to re-lease, purchase, or return the equipment to the Lessor.

Why do Companies Lease?

In the United States, 80% of all businesses, and over 70% of the Fortune 1000 Companies, lease some of the equipment they use. WHY?

Conservation of Capital: Needed equipment can be acquired without depleting capital that may be needed for other business purposes. Also, productive assets can be obtained for the purpose of earning profits for your business when internal capital for purchasing equipment may not be available.

New Line-Of-Credit: A Lease-line can be viewed as another line-of-credit, which does not impact a company's existing bank credit arrangements.

Fixed Rate Financing: Lease payments are fixed at the beginning of the lease for the entire term. Fluctuation in market rates have no impact. Budget and cash flow planning are made easier.

Use vs. Ownership: In many cases, it is the use of equipment, not its ownership, that is the important element in its value to a business. The risk of technical obsolescence may make the additional costs of ownership unjustified, and the flexibility that leasing provides may be lost without benefit.

Full 100% Financing

No down payment is required on a lease. A small advance rental or security deposit is generally sufficient.

Tax and Accounting Considerations

Lease payments are usually fully deductible expenses over the term of the lease, and often provide a quicker cost recovery than is possible with the depreciation of a purchased asset. Depreciation expense for purchased equipment enters into the Alternative Minimum Tax (AMT) calculation, and leasing equipment instead of owning it may help your company avoid a tax liability resulting from the AMT. Leasing can allow you to take advantage of Off-Balance Sheet accounting, which can also have a positive effect on your bottom line.