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Common Questions about Leasing
There are a wide variety of decisions to be made when deciding if lease
financing is the correct method of financing for your company. Here are
some of the questions an owner/manager should consider when deciding whether or
not to lease equipment:
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Will the asset produce income or savings?
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Do I want the asset on my balance sheet (capital lease) or do I want to expense
it on the P/L statement (operating lease)?
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What tax advantages, if any, does leasing afford my company?
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Do I eventually want to own the asset or do I just want the use of the asset?
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What will the cash flow from the asset look like and can I match it to the
monthly investment on the lease?
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How does leasing compare to my other options such as paying cash, or obtaining
a bank loan?
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How long will this asset be useful to me in my business?
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How much will it cost to maintain the asset and should I consider a "full
service" lease that includes maintenance?
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Does my company qualify for lease financing?
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Can I get out of a lease if I find I made the wrong decision?
Choosing a method of financing is one of the most important decisions a company
owner can make. If you would like more in-depth information that will
assist you in answering the questions above
click here to learn more about leasing.
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