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Returnable Pack Leasing Program |
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Realizing the
Advantages of Returnable Pack Leasing
- Conserve valuable working
capital. Capital acquisitions reduce a company's working capital. Lease
financing allows working capital to be used for other purposes. You
realize the best of both worlds.
- Ease of acquisition. Once you
have decided on your returnable packaging solution that best suits the
job, you simply decide on the payment stream that best suits your budget.
- Preserves your credit limits.
Lease financing enables you to acquire needed returnable packaging without
tying up other valuable credit lines.
- Ease of budgeting. When lease
payments are fixed over the term of the lease, budgeting cash flow is made
much easier.
- 100% financing. Lease financing
provides for total financing. Hard and soft assets can be financed,
providing you with a "total" solution.
- Term and payment flexibility.
The term and frequency of payments can be tailored to your company's own
unique business requirements.
- Self-financing. Lease payments
are often paid with dollars generated by the utilization of the leased
equipment.
- Payment convenience. Another
advantage of lease financing involves the direct-debit method of lease
payments. Administering the account now becomes the responsibility of the
leasing company.
- Tax advantages. While subject
to the regulatory guidelines, lease payments may be tax deductible. A
consultation with your accountant will determine the applicability and
nature of tax deduction for each circumstance.
Note: Pine Valley
Packaging Limited partners with CIT Financing
Typical lease /
purchase example based on 8% interest rate
| Cost of
returnable pack system |
$250,000 |
| Lease
period |
3
years |
| Purchase
option |
10%
after 3 years |
| Interest
rate (will fluctuate) |
8% |
Monthly
lease rate
|
$7,169.55
plus applicable taxes |
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