Reasons for funding (not buy) equipment

We are constantly told that there are significant advantages to leasing (Finance) equipment purchases in a business. Let's examine some of these benefits.

Economic stats tell us about the equipment leasing and financing in Canada and the United States billions of dollars. Historically, nearly 1/3 of all equipment has been funded, not purchased. We will look at some of the advantages of leasing real - every benefit many people do not necessarily accrue to all the companies it funds, but many, and the manager or financial manager must understand how your company can benefit from this funding strategy.

When we break down the advantages of leasing a large number of individual points are positive that these benefits can be simply grouped into a number of key categories. They are as follows:

* Business, in general, it is easier to account for lease - payments are fixed

* The leases can be structured so as to have your own business or do not possess the device at the end of the contract term

* Many companies are either unable or choose not to address the technological aspects of the equipment you are financing - Leasing gives them maximum flexibility in that area. For example, a technology leasing company generally wants to use technology that evolves. She does not intend to buy or block in possession of technologies that are evolving. Think your computer!

* Lease financing has maximum flexibility in liquidity management - payments can be customized with more depreciation, according to the seasonality of the business customers, periodic fixed payments (short-term loans tend to have variable rates, not fixed), etc.

* Budgeting: In most cases this is usually the main reason for most customers take for financing equipment - the funding provided during the period of lease allows the company to acquire more equipment than they could potentially have in a setting straight 'purchase'. In many cases, little or nominal payment is required. The vast majority of customers also pay taxes on equipment and maintenance by paying fixed monthly rental. The companies that are either faster-growing, or in some cases are having a certain level of financial challenge always tend to gravitate to the solution of the lease.

Leasing company has always been perceived as a strong alternative financial acquisition. In the economy of 2009-2010 where 'cash is king' as the alternative financial lease option is a strong ......