If it Appreciates, Buy It. If it Depreciates, Lease It.
Fact
Leasing helps your business CONSERVE PRECIOUS WORKING CAPITAL.
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.
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
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.
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