Below
is an example of how our leasing program can help a small
business or a farm multiply its cash flow and profits.
LEASE
VS CASH PURCHASE VS BANK LOAN
EQUIPMENT PURCHASE PRICE $35,000
REVENUE $105,000/YR FOR 5 YEARS
$1 Additional Investment equals $3 in Revenue
| |
CASH |
BANK |
LEASE |
| REVENUE |
$105,000.00 |
$105,000.00 |
$105,000.00 |
| Additional Revenue |
0.00 |
84,000.00 |
105,000.00 |
| COGS 50% Revenue |
52,500.00 |
|
105,000.00 |
| GROSS PROFIT |
52,500.00 |
94,500.00 |
105,000.00 |
| Depreciation Per Year
|
7,000.00 |
7,000.00 |
105,000.00 |
| Interest Expense
|
|
2,465.00 |
|
| Lease Expense |
|
|
9,350.00 |
| Net Taxable Income |
45,500.00 |
85,035.00 |
95,650.00 |
| Taxes 30% Rate |
13,650.00 |
25,510.50 |
28,695.00 |
| Net Income After Taxes |
31,850.00 |
59,524.50 |
66,955.00 |
| Add Depreciation |
7,000 |
|
|
| Deduct Principal Payment |
35,000.00 |
11,593.50 |
|
| Net Cash Flow |
$3,850.00 |
$47,931.00 |
$66,955.00 |
| Cash Flow Years 2,3,4,5 |
38,850.00 |
32,450.00 |
30,205.00 |
| Net Cash Flow 5yrs
|
$159,250.00 |
$177,731.00 |
$187,775.00 |
|
Assumes Business Lease with an option
to purchase for 10%
Assumes Full Depreciation over 5 years
Bank Loan assumes 20% downpayment Interest 9.5% |
CIFCO'S MAIN CONCERN IS CASH FLOW AND BUSINESS
GROWTH!
Call, Fax or e-mail any questions you have
|
