Tuesday, July 1, 2008

Top Ten Reasons to Lease Equipment

Productivity can be increased,
Costs can be decreased---

The key is not who owns the equipment, but the use of the equipment
Ten Advantages in Leasing:

1. Take advantage of current depreciation allowances.

2. Better leverage of cash flow.

3. Fast and convenient - less hassle for long term "borrowing".

4. Provides cost-cutting or profit making equipment to be installed immediately.

5. May help in up-grading equipment sooner; better planning/results.

6. Leaves normal lines of bank credit undisturbed.

7. May increase the firm's ability to acquire funds, plus does not dilute ownership.

8. Creates or maintains working capital for inventory, accounts receivable, other expenses.

9. Pays for equipment out of before-tax savings rather than after-tax profits.

10. May help avoid minimum alternative tax.

The latest survey indicates the Top Five Reasons for Choosing Equipment Leasing :

1.*29%----Cash flow---Better use of cash
2. *28%----Tax implications.
3. *20%----Dealer Convenience
4. *13%----Rapid technological changes cause product obsolescence.
5. *11%----Equipment Leasing companies are more accommodating than