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Frequently Asked Questions What is an equipment lease? Q: What is an equipment lease? A: An equipment lease is a contract for the use of a specific piece (or multiple pieces) of equipment for a specified period of time (generally 24-60 months), at a fixed monthly payment amount, which is agreed upon in advance.Q: Why should I lease equipment? A: Leasing equipment is synonymous with use of an asset. You don't pay your employees a salary in advance; you pay them as they contribute. It should be no different with a contributing asset like business equipment. Leasing enables you to pay as you use the equipment, not before. Cash Management
Q: Are there tax benefits to leasing? A: Certain types of leases can be advantageous to most businesses in that monthly lease payments can often times be deducted as an operating expense. This clearly reduces the net cost of the lease. (Applied Biosystems does not provide tax or legal advice. Consult with your tax and legal advisor about the potential tax benefits of leasing and other types of financing.) Q: What type of equipment and services can be leased? A: The list of equipment types that fall under our current program includes at least the following: all Applied Biosystems instrumentation and accessories; computers, software and peripherals, soft costs such as installation and service. Q: What happens at the end of a lease? A: There are several end-of-lease options from which you can choose, including: purchasing the equipment, upgrading to a new model, continuing to lease, and returning the equipment. We believe this information to be accurate as of the date of publication; however, such information is subject to change without notice. We are not responsible for inadvertent error. Please consult your tax, accounting and legal consultants about the applicability of this information to your specific needs. All financing options are subject to credit approval by AB funding partner and applicable accounting procedures. |
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