When you have expendable packaging products that you use regularly. When you do not have a good trigger for purchasing on a product and it usually is a rush to get it in.
When our standard lead time is greater than 1 week.
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 - $250,000v
- Lease period - 3 years
- Purchase option - 10% after 3 years
- Interest rate (will fluctuate) - 8%
- Monthly lease rate - $7,169.55 plus applicable taxes
Terms and Conditions do apply. Please see your Sales Rep for details. Deductible. A consultation with your accountant will determine the applicability and nature of tax deduction for each circumstance.
The information in this article was current at 06 Dec 2011