Types of Leases

DEFINITION

Lease (les) n. 1.A contract granting use or occupation of land or holdings during a specified period in exchange for rent. 2. Property used or occupied in exchange for rent. 3. An extension under improved circumstances: a new lease on life --tr. v.leased,

leasing, leases 1.To use or occupy by contract in exchange for rent. 2. A modern financial means of acquiring personal property (equipment), often with a option to purchase, most often at the termination of the contract. {Middle English les, from Norman French, from Lesser, to lease, from Old French laissier, to let go, leave, from Latin laxare, to let go, loosen, from laxus, LAX.} ---leas’a-ble.adj.

Philosophy

The Philosophy of Leasing: It is not the ownership, but the use of equipment that makes you a profit.

The name of the game is to make a profit. Owning obsolete equipment doesn’t impress anyone. Obsolete equipment is not an asset. Obtaining "use" with little cash expended...having modern, efficient tools and facilities will make you more competitive and attract more business and activity.

Leasing may also have tax benefits, including a "faster write-off"...and can also give you (especially at the end of the year with one payment) a $18,000 depreciation deduction with a completed lease. An operating lease does not have to appear on your asset-liability balance sheet. And there are other advantages (see Why Lease).

The basic philosophy is the proper use of money; leverage: putting cash into things that make a profit such as advertising, inventory, employees, new markets, research and development, faster producing assets rather than ones that "depreciate" and at best, become "obsolete."

American Leasing Mission Statement

(originally the mission statement of the late "Mac" Pollock, founder of Key Lease, Redwood City, California --- mentor to Kit Menkin )

Not all leasing companies are alike. The difference in the quality of leasing companies is the same as the difference in the quality of airlines, restaurants and all companies...the extent of personalized service above the expected. Believe me, American Leasing prides itself in putting forth whatever human effort is necessary to give you that difference.

Christopher "Kit" Menkin
Founding Partner
American Leasing