EQUIPMENT LEASING

December 2nd, 2008 Posted in EQUIPMENT LEASING

If you are in the market for an equipment lease, then you are in very good company. It has been reported that 80% of all small business owners lease their equipment. Additionally, recent surveys show that despite the recent financial crisis, equipment leasing volume in 2009 will remain consistent with 2008 levels. This means that of the roughly $1.2 trillion of expected equipment investment in 2009, $672 billion of that will be leased.

Still not convinced that equipment leasing is right for you? Standard business theory holds that if any of the following conditions are met then equipment leasing should strongly be considered:

• There is a high risk that equipment will become obsolete before the end of its useful life
• The equipment will be needed only for a short period of time
• Capital resources need to be preserved
• Technical, administrative or other non-financial equipment not internally available can be more easily secured from a leasing company
• High interest rates must be paid for borrowing money
• The tax benefits resulting from the equipment ownership cannot be used
• The equipment will have a poor market value at the end of its term use

Preservation of capital is a general concern of any size business, large or small. Leasing allows for the payment for the use of the equipment over time, rather than having a large capital outlay for the purchase of the equipment. It has also been reported that equipment leasing is actually a hedge against an economic downturn (quite useful under the current conditions). Leasing provides relatively short-term flexibility, and helps to mitigate the possible threat of insolvency due to cash-flow problems.

If you are ready to get started, or if you have additional questions please call us now at 1-877-777-9933.