If it Appreciates, Buy It. If it Depreciates, Lease It.
How?
Cash tied up in fixed assets is no longer available to finance important profit generating areas such as inventory, production, marketing, research and development, etc. As the saying goes; “ Buy what appreciates, Lease what depreciates”.
Originally posted 2010-01-29 12:00:53.
Fact
Leasing gives you MORE PURCHASING POWER
How?
By purchasing equipment with cash or borrowed funds, sales tax must be paid up front. For example, if you have $100,000 available in cash or through a bank loan, you could only purchase approximately $88,495 worth of equipment, as the other $11,505 would go toward the payment of taxes (assuming GST/PST of 13%). With leasing, you could acquire the whole $100,000 worth of equipment … taxes are only paid on the monthly payments! Also, if you used a bank loan, generally the bank will insist on some equity (usually a minimum of 20% of the purchase price) into the transaction, in the form of a down payment.
Originally posted 2010-01-28 12:00:12.
Leasing provides you with EASIER BUDGETING
Lease terms, payment streams and purchase options can be tailored to meet your budget. Special structures are available to match the your business’ seasonal cash flow. In addition, because the leases are based on “fixed rates” you are not at risk due to interest rate fluctuations.
Originally posted 2009-09-08 11:40:39.
A lease is a contract between two parties, the leasing company or “lessor” and the customer or “lessee”, where the lessor acquires equipment that is chosen by the lessee from an equipment supplier that is usually chosen by the lessee, and then the lessor leases the equipment to the lessee for the term specified in the lease contract. The lease may contain no option for lessee to own the equipment at the end of the lease, in which case it is truly a rental agreement, or it may contain an option (the “purchase option”) for the lessee to acquire the equipment by paying the agreed upon purchase price to the lessor.
Leasing can be used to acquire just about any type of equipment, machinery or other capital assets. Leasing can even be used to for computer software.
Originally posted 2009-09-05 13:42:49.
Fact
Leasing helps you PRESERVE YOUR EXISTING BANK CREDIT LINES
How?
All businesses have access to limited credit lines at their banks. All businesses must keep their operating lines, demand loans etc. within their bank’s total exposure limit. By using the leasing program, you are opening a brand new non-bank credit line – one that normally requires no down payments and no outside collateral – while preserving your existing (and future) bank borrowing ability.
Originally posted 2010-01-27 12:00:15.
Equipment Leasing is Digg proof thanks to caching by WP Super Cache