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    2 Replies Latest reply on Aug 14, 2011 7:57 AM by LUCKIEST

    New Article: Four Decisions to Make Before Leasing Equipment

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      A new article has been posted on Four Decisions to Make Before Leasing Equipment.  I know that I personally prefer to own something outright over leasing, but this article provides some good tips that make leasing a more attractive option then before.  Take a look and tell me what you think.  How often do you lease equipment for your business?  What type of lease do you generally get?

       

      ~Paul

        • Re: New Article: Four Decisions to Make Before Leasing Equipment
          BizOptimizer Adventurer

          Great article, but since most people can't calculate interest payments they don't know on many leases you are paying 25%.  In business it is hard to make money when you are paying 25% on the capital required to make money.  Likewise, the tax implications are HUGE, so your accountant should probably be a big part of the decision - again, as most don't know how it will affect the taxes - and therefore bottom line profit.

           

          Either a lease or purchase could be more expensive day-to-day, but might be more profitable after tax considerations are made.  If one doesn't know, one should realize this and ask someone who does.

          • Re: New Article: Four Decisions to Make Before Leasing Equipment
            LUCKIEST Guide

            ON the subject of LEASING, leasing is NOT directly a source of capital.

            Leasing is a way to reduce the capital required to finance your business.

             

            ADVANTAGES OF LEASING

            Frees up working capital

            Provides a new capital source

            Provides fixed rate financing

            Does NOT disturb present bank credit lines

            May not show on the Balance Sheet

            May be a hedge against obsolescence