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Leasing allows
you to acquire the equipment you need today and use it cost-effectively
until it no longer meets your needs, then upgrade without dealing
with the outdated and obsolete.
Does
your business depend on staying on the leading edge?
If your competitive advantage relies on the latest, most sophisticated
hardware, leasing should definitely be considered. No matter
how fast the leading edge is moving, leasing helps you keep pace.
Do
you need financial flexibility?
You may be able to expense your monthly rental payments rather than
depreciating the equipment cost, allowing you to order new equipment
as you need it (consult you tax accountant).
What
does a lease vs. purchase analysis tell you?
A "lease vs. buy" analysis compares the costs of leasing
and buying based on the assumptions used for residual value, cost
of funds, tax rates, and so on.
* Consult your
tax and legal advisors for specific advice on the potential tax
benefits of leasing for your situation.
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Can I avoid
a large cash outlay?
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Cash |
100% of
cost |
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Loan |
Down Payment,
often 25% |
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Lease |
100%
Financing |
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Effects my
bank credit line?
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Cash |
Balance
sheet impact |
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Loan |
Decreases
credit line |
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Lease |
No
money is borrowed |
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Effects operating
capital?
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Cash |
High up
front costs |
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Loan |
Down Payment
required |
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Lease |
Low
front-end costs |
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Payments
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Cash |
100% now |
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Loan |
Payments
vary with interest |
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Lease |
Fixed
payments, possible tax benefits* |
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Can I upgrade/add
on easily?
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Cash |
No |
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Loan |
Re-application
often required |
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Lease |
Yes |
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Can
I schedule payments to
match my cash flow?
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Cash |
No |
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Loan |
No |
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Lease |
Yes |
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