In addition to offering factory pricing, Allegheny has a variety of flexible Leasing Options available. Complete our online form to receive additional information.

Advantages of Leasing

  Leasing your destruction equipment, using Allegheny's flexible leasing options, has specific advantages when compared to financing through a bank loan or purchasing with cash. The main advantages include:

1. Capital conservation. Using the variety of leasing options available through Allegheny, leases can be obtained with little or even no money down. When borrowing from a bank to make a purchase, cash out of pocket is required for a down payment—money that can be used for other important business needs, such as marketing and employee salaries.

2. Leasing usually requires less financial documentation than receiving a loan from a bank. Also, leases require less preparation and are usually easier to secure. Some banks want two to three years detailed credit history, while leases often require only six months of history or less. This can be a definite advantage to a new contract shredding service.

3. Because you can secure a lease with little or no down payment, it's likely that you can get more equipment or higher quality equipment than you can when buying outright or borrowing.

4. Leases are usually “off-sheet,” unlike loans and direct purchases—so they aren't included among your debts on financial statements. This could mean that your borrowing potential (through traditional bank financing) is not reduced, as it would be if you borrowed to make a purchase. And it could make your equity-to-debt ratio look better.

5. Lease payments are usually considered “pre-tax” rather than “after-tax” expenditures. This means that you can write off lease payments for tax purposes, whereas when borrowing you can usually write off only the interest paid. Consult with your accountant or financial adviser for all tax consequences of leasing.

6. Allegheny's leasing options make it possible for you to purchase equipment at reduced rates when your lease is over.