| Lease or Purchase, which
should it be...
This is
a tough question as it involves several considerations.
First of which is, available cash on hand. Second,
how will it benefit me as a tax deduction. Third,
how long do I expect to keep the account. Fourth,
How do I feel about financed money. Fifth, how
is my credit. The fact is the simplest way to
figure this out, is to establish your needs
for your account against your current business
conditions.
When
we take on new accounts there are many variables
we must decide on when choosing our capitol
equipment purchases. The primary items to consider
are total start up investment, how long do I
feel the account will last, will I fund the
payroll out my existing funds and for how long.
A good lease program will allow us flexibility
in the following areas.
A. Reduces
your initial cash out of pocket.
B. Allows
for cash on hand to meet payroll and other
needs.
C. Places
the proper amount equipment into the account
to meet your operational needs and is affected
by available cash.
D. Allows
for continued customer growth, by using a
lease to fund equipment purchases even with
limited cash on hand.
E. Gives
you complete control of your depreciation
as all lease payments are same year right
off.
In summary a lease will give
you lower monthly costs, a stronger operational
base, greater business expansion capabilities
and, a faster tax right off. We believe that
you should consider a lease option, as it will
help you build a successful business.
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