Three common Equipment Finance Myths

Myth #1: Only Certain Assets are Appropriate for Leasing.

– Equipment financing offers a way for business leaders to have the best of both worlds.

– Equipment financing can help the company grow!

– Allows you to hold on to more cash than is possible with an outright purchase of new equipment.

Myth #2: Leasing Locks me into an Agreement and Reduces my Flexibility.

– Well suited for assets a company only wants to use for a relatively short amount of time, such as computers that are prone to obsolescence.

–  Leasing gives a company more flexibility by allowing managers to make decisions at future states and times when circumstances may have changed.

–  At the end of the lease, the company might choose to purchase the equipment.

Myth #3: Leasing is Too Expensive

– Leasing offers cash-flow savings on a monthly basis compared to purchase payments. And in the case of sale-leasebacks, companies can lock in today’s competitive interest rates .

– Also, when a company holds onto an asset too long costs can mount up. Such as maintenance, downtime, disposal and remarketing.

-Leasing is less expensive than ownership over the long run.

http://www.industryweek.com/corporate-finance-amp-tax/three-common-equipment-finance-myths