Flow of Capital - Lessee Advantages

Captive leasing company: a better way to financially manage your equipment

Supporting your role as the lessee of agricultural equipment through your captive leasing company, you will realize significant advantages.

Previously your options for equipment acquisition pretty much came down to leasing from an outside vendor, paying cash for the equipment, or arranging financing through a commercial bank.

But now your captive leasing company will buy the equipment and lease it to your operating company.  The captive leasing company will keep the profit your lender or lessor used to earn, manage the income taxes resulting from the profit between your two entities, and provide other advantages including protection against lawsuits.

It’s a matter of “advantage-lessee” in these important ways:

• All administration is handled by an administrator (additional “hired-help” in concert with the help already being received by the insurance company ).  That means all the paperwork and processing; funding agreements; payments; tax remittals and repaying loans.
• The entire process remains under your control.  You own the lessee and the captive lessor, and you direct the nature, amount and pricing of each transaction.
• These are true leases that offer profit participation in the equipment’s residual value at the end of the term.
• If no immediate equipment acquisition is planned, you can still use your captive leasing company to purchase and lease-back existing equipment.

Questions?  Contact us at any time for detailed explanations.

Next Step: Flow of Capital - Lessor Advantages