Not to be overly dramatic so early in the morning, but the decision you make on the above question could be the difference between your business succeeding or failing. Cash-flow is the number one reason businesses, especially new businesses, flail and then fold.
With Equipment leasing there is no hefty down payment required, allowing you to keep your money in the bank, in a high yield savings account, or even in the stock market (although risk is involved with the latter) working FOR YOU. That money is in turn at the ready for use, should you encounter unexpected costs in doing business (which we, as business owners, ALWAYS encounter unexpected costs) you have an account full of money to get you through. Plus, your personal credit lines are untouched - as leasing doesn't affect your credit. So, should you need to take drastic measures, and get a loan of some sort, the leasing debt will not appear and interfere with your ability to secure funding. Again, these simple small measures can actually keep your business afloat.
Another angle for business owners: you need to evaluate the type of equipment you are in need of... as most equipment is continually, and tirelessly upgraded. And with leasing rather than "owning" you can fully combat obsolescence; that way you won't get stuck owning a "dinosaur."
All of these things factor in to how truly important it is to make the right decision, when at the crossroads of Equipment Leasing vs. Purchasing. In the end, study the facts, talk to professionals - and understand that there is no right or wrong answer, there is ONLY what is right for you and your business right now.
4 comments:
I recently just leased a new '08 Nissan Altima, and I had a pain of a time finding quality information between leasing and financing.
I'll def. be referring my friends to your site in the future!
Excellent, I think it so important to get people the facts - because the truth is that leasing isn't right ALL the time, and you need someone trustworthy to spell it and tell you the truth. You can come to me anytime, with any questions!
I do hope the car is working out for you... has gotten great reviews.
That's really helpful Crystal. So often the right solution is counter intuitive - I would always have thought that it is best to "own" your equipment as it is then your "asset" - but your thinking and solutions actually makes for a more intelligent way of conducting business
Nalin - You said it perfectly. "counter intuitive", we are all raised to OWN OWN OWN, the more you OWN the better off you are. And sometimes that is true, and sometimes it isn't. Remember, you can come to these boards and ask any questions of myself or your fellow business owner/business enthusiast. Thanks for stopping by.
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