||Through the Interface Flexible financing program, we give you even more flexibility in flooring choices. Rapidly evolving technology paired with ever tighter per square foot budgets make the acquisition of facility and equipment assets increasingly difficult. Tying up precious capital in floorcovering may be the last thing you want to do.
As a part of our set of integrated flooring services, we've teamed up with Dodd Pacific Capital Resources to create a set of financing options for you.
Why lease flooring?
A lease provides for the use of a floorcovering for specific periods of time at fixed payments. Installation, removal and warranty support can be added to the original purchase, allowing payments to be spread out over time. The following are some specific benefits of leasing your floorcovering and accompanying services.
Tax Advantages. Purchases may be made with after-tax dollars. Depending upon the structure, lease payments may be treated as a pre-tax business expense (just like phone bills, rent, photocopy expenses) before taxable income is computed.
Separate Credit Source. Lease payments may have no impact on credit lines, so borrowing power is preserved for other business opportunities.
No Down Payment. Whereas other types of financing require a significant down payment, leasing is 100% financing. Most lease agreements require an advance of only one or two month's payments.
Easy To Upgrade. With a one-page schedule incorporating a master lease by reference, additional items or upgrades can be incorporated with a phone call to your Service Provider. Lease terms can be custom fit to a budget, and modified if business needs change.
Eliminate "Hidden Costs." Leasing covers more than just the flooring. It also can cover the cost of design, furniture moving, installation, and reclamation of the floorcovering being removed.
Simplify Accounting. Lease payments are little more than a line item in the monthly cost of operations. A minimal bookkeeping effort minimizes time-consuming or IRS-challenged depreciation schedules.
Interest Rate Stability. In 1980 interest rates skyrocketed from 9% to 21.5% in a single year. Unlike bank lines with variable rates, lease payments are fixed for the entire term.
Improve ROA and ROI Measurements. Off-balance sheet financing (the lease is in the operating budget) and level payments tend to improve Return On Assets (ROA) and Return On Investment (ROI) measurements, as well as other key financial ratios.