Why should a business lease art?

An art lease agreement is a contract in which the user (the lessee) pays for the use of the art while the lesser owns the art. Leasing has become an increasingly popular method of resource utilization because it offers a number of advantages over more traditional alternatives such as cash purchase or bank financing. Some of the advantages of leasing art are listed below.

• Conservation of Capital
  The capital conserved while leasing art as an operating expense can be utilized for other capital expenditures. The average return on capital can range from 10% to 25% after taxes.
• Conservation of Credit
  A lease is not a loan. Borrowing reduces lines of credit. Leasing is an operating expense and hence, allows the customer increased borrowing capacity.
• Off balance Sheet financing
  An operating lease keeps the debt, and the corresponding asset, off the company’s balance sheet. Therefore, borrowing debt covenants are circumvented, financial ratios are enhanced and borrowing capacity is increased.
• Tax Benefits
  An operating lease may allow 100% of the monthly payment to be included as an operating expense. Bank financing would allow only the interest costs to be included as operating expenses. Check with your tax advisor to determine how this may lower pre-tax income and reduce taxes.
• Flexible Financing
  Leasing provides fixed rate financing with specially structured terms to accommodate the specific needs of the company.
• Flexible Lease Structure
  Art Mode Gallery offers flexible leasing options to meet business’s unique needs.

Frequently Asked Questions

Why lease?
Leasing offers fixed regular payments, provides financing for 100% of the art cost, conserves both working capital and lines of bank credit and may offer tax advantages. You can Lease art for as little as $24 a month.

Who can lease?
Any company, organization, association or self-employed individual.

What is the process for leasing art?
We review the credit information supplied on the lease application. Upon approval, the lease agreement is prepared. When the art is delivered, billing commences for the agreed upon lease payment.

Is a down payment required?
A security deposit, usually equal to two months’ lease payment, is generally needed.

How are lease payments determined?
Monthly payment is based on the term of the lease, price of the art and type of leasing plan chosen.

What factors are used to determine credit worthiness?
Type of business, length of time in business, financial condition, referenced from financial institutions and Dun and Bradstreet (D&B) or other credit bureau ratings.

Can the lease be canceled?
No, but art can be traded for other art.

Should you have any questions on leasing art please contact me:

   Denis Smith

      Email:    amg@artmode.com

      Canada Wide Leasing Plans Available:    1 613 818-0158