INVESTIGATING LEASING OPTIONS
While many shredding firms in the market for a new truck know what kind of a truck they
want, many may not know the potential benefits of leasing.
Family-owned Intek Leasing, Roseland, N.J., has been leasing and financing shredding
trucks and equipment such as balers and containers since 1986. Intek says its services
are tailored to the needs of individual customers.
The most difficult issue for a company in the document destruction industry can be its
success, says Intek’s NAID (National Association for Information Destruction) Representative Paul Garfunkel. A large new account may require additional equipment. Lease
financing can replace tying up lines of credit with a bank loan. “Intek Leasing provides
an off-balance-sheet solution in the form of a lease, which, since we don’t report to credit
bureaus, won’t affect the available and valuable credit position,” Garfunkel says.
Another benefit of leasing vs. purchasing is that lease payments can be written off
as a business expense against tax. “Accountants love leasing as the last tax loophole,”
With its own motor vehicle department that handles the plate work for many states,
Intek qualifies as one-stop shopping for many customers. Garfunkel says that most leasing companies, unlike Intek, don’t own trucks, but broker deals through various sources.
“They generally don’t know how to handle rolling stock or the various state laws regarding vehicle registration and leave that work to the companies they pass the lease contract
along to, which can make the plating process a bit tedious,” he says.
For customers that choose the lease-to-own option, Intek has typically written five-year
leases with a $1 option. The company now offers a seven-year program to qualified lessees, exclusive to the mobile document destruction industry, for new mobile units.
Lessees may not need advice on vehicle selection, though Intek’s staff discusses the
need for quality trucks with lift systems and the capacity for speed and efficiency.