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.