Invite Art Mode to your office!
Artwork for $25/month
Traded for other art
Corporate Art Leasing
Available to any company, organization, association or self-employed individual.
Pay to use of the art while we continue to own it. Leasing has become a popular method because it offers advantages over purchase and bank financing. ArtMode leasing provides fixed rate financing and flexible leasing options with specially structured terms to accommodate the specific needs of your company.
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. A security deposit, usually equal to two months’ payment, is required.
Monthly payment is based on the term of the lease, price of the art and type of leasing plan chosen.
Capital, Credit & Taxes
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.
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. Borrowing reduces lines of credit. Leasing is an operating expense and, allows the customer increased borrowing capacity.
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.
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.