Leasing keeps your bank lines and other credit
sources available to meet short term requirements:
Payments do not change – You know what your
expense is each month
You pay for the equipment as the equipment
benefits you. Just as you want to control operating costs, leasing
helps you control your equipment costs
Since you can arrange payments according to your
cash flow, leasing allows you the use of a greater amount of
equipment for a given dollar allocation.
SHOULD I LEASE, SHOULD I BORROW THE MONEY FROM MY BANK OR
SHOULD I JUST PURCHASE THE EQUIPMENT? Every situation is
different and therefore, each situation must be evaluated on an
individual basis.
- Leasing provides fixed rate financing
- Leasing allows you to keep your credit Iines open
- With leasing, you pay for the equipment as it benefits you
-- not before
- Leasing affords you the opportunity to provide state of the
art equipment to your clientele
If you have a line of credit at your bank with an attractive
fixed interest rate and you are confident that you will not need to
use the line for any other situations, it may make sense to finance
your equipment through the bank. However, many business people
utilize leasing companies to acquire equipment in order to keep
their line of credit available for working capital, expansion
possibilities or any other situation that may arise which requires
quick cash.
Cash, if invested wisely, can provide great income opportunities.
Therefore using your cash to pay for depreciable assets such as
equipment may not be the right choice for you.
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