Leasing
In order that hotel and motel owners may have greater flexibility with their capital spending, Asia General Corp. offers a special leasing option for all equipment that is purchased through AGC.  This is done so that we may address the specific needs of hotel owners and maintain an awareness to the unique circumstances that the hotel industry entails.

Leasing allows property owners to purchase furniture items, refurnish their rooms, and replace out-dated electronic equipment without the burden of spending all their capital at once.  No down payment is required and monthly payment options can be customized and adjusted to accomodate the budgetary needs of customers.  Here is a list of advantages of equipement leasing:

CONSERVATION OF CAPITAL:  When capital is conserved by leasing equipment, it can be used for other company uses such as increasing other inventories or expanding sales.  The average return of capital in business is 18% after taxes.

CONSERVATION OF CREDIT:  A lease is NOT a loan.  Borrowing reduces lines of credit.  Leasing, however, is a NEW credit source.

BALANCE SHEET EFFECT:  If equipment is purchased and money is borrowed, the liabilities are increased.  Asset to liability ratio will be impaired.  Liquidity will be decreased.  If equipment is purchased outright by cash, fixed assets are increased, current assets are decreased.  Thus less liquidity results again.

AVOIDS DILUTION OF OWNERSHIP EQUITY:  It is better to lease the equipment than to dilute ownership in the company through equity financing.

ELIMINATES OBSOLESCENCE:  If you do not own the equipment, you would not keep it beyond its useful life.  If purchased, the depreciable life may be longer.

OVERCOMES TIGHT BUDGET LIMITATIONS:  The fact that rentals are divided between department acquisition is an oversimplified assumption.  In a large corporation, a purchase may involve numerous rungs of the corporate ladder before signatures are obtained and the purchase is approved.  Even then, the purchase request may be delayed until next year's budget.  To acquire the equipment through a lease, which is considered an operational expense, the process simply requires one authorization before the equipment can be obtained immediately.

REDUCES COST OF INFLATION:  By leasing, you are paying with tomorrow's dollars for the equipment you obtain and use TODAY.

FAST TAX WRITE-OFF:  A true lease (without any mention of a purchase price at the termination) can be written off 100% as an operational expense.  EACH RENTAL PAYMENT IS 100% DEDUCTIBLE.  If the equipment had been purchased under a conditional sale, only the interest and that depreciation allowed each year by the IRS can be deducted.

For more information on how to customize a specific plan that suits the unique needs of your property, contact an Asia General representative and start leasing TODAY!