It's important to understand what type of companies utilize leasing as a tool.

 

In short, any growing business can benefit from leasing equipment. It provides a practical way to stay abreast of the latest trends and use the newest, most productive equipment without draining cash from your business or tying up important bank lines of credit. What's more, tying up cash in fixed assets can severely restrict a company's ability to move quickly on other opportunities.

 

Your organization should consider leasing as an alternative to a traditonal loan if:

 

• you are purchasing capital equipment

• are expanding or moving

• want to preserve liquidity

• have used up your allocated equipment budget

• are restricted by borrowing covenants

• are technology dependent

• are sensitive to ROA, EPS and/or ROE metrics

• you find yourself subject to AMT

 

 

Who Leases?

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