This popular financing method is ideal for companies that plan to use their Mazak equipment long after the end of their lease terms. It essentially provides the same accounting and cash flow considerations as a loan and enables manufacturers to purchase their equipment for $1 at the end of their lease terms.

Other Advantages:

• Low monthly payments
• Keeps bank lines of credit open for other uses
• Preserves working capital
• Possible depreciation and interest expense benefits for tax purposes
• Fixed payments through the entire lease term

Manufacturers unsure about purchasing their Mazak equipment at the end of their leases due to fluctuating market demands often choose this form of financing. It provides the greatest flexibility at lease expiration in that you can return your equipment, continue to pay for and use your equipment per your lease agreement, or purchase your equipment at Fair Market Value.

Other Advantages:

• Lowest possible monthly payment for improving cash flow
• Potential to deduct monthly lease payments as an operating expense deduction
• Recorded as a company expense rather than an asset on a balance sheet
• Improves debt/worth and Return on Assets (ROA) ratios

This is the simplest form of financing available, and generally provides the lowest total cost. With Loan Financing, customers are able to apply the machine deposit to their down payments. Furthermore, because we understand the high collateral value of our machines, our required down payments are typically lower than other financing sources.