Bob Newman asked:

You can tell a newcomer to the business world (or someone without much experience) by the way they start investing in new equipment heedlessly. A veteran (or someone who has a much more experienced business person to guide him) would know that there are times when you can resort to Business Equipment Leasing instead to save on money that could go further when spent on other needs of the business instead.

Business Equipment Leasing is like other forms of equipment leasing in that you lease your equipment from the owner (or lessor) in exchange for paying for them during the time you are leasing the equipment. You, the person borrowing the equipment, are the lessee. One common type of Business Equipment Leasing is called Office Equipment Leasing. The good point about Business Equipment Leasing is that it allows you to use the business equipment for the term of the lease, then use any money you have at the end of the lease to either lease more up to date business equipment or buy your own business equipment outright. Business Equipment Leasing is often much cheaper than renting equipment. In Business Equipment Leasing, the arrangements you make with the owner could also include an option to buy the equipment you are leasing once the terms of your lease are up.

To pursue Business Equipment Leasing, you might want to use the services of a Business Equipment Leasing broker. This Business Equipment Leasing broker is responsible for submitting and monitoring the submission of your requests for Business Equipment Leasing to lenders like banks. It is not the Business Equipment Leasing broker who will provide funding – he simply acts as a middleman. If you have time on your hands and would like to save money, then you can bypass the Business Equipment Leasing broker altogether and head for the Independent Lessor instead.

An Independent Lessor would be the diversified financial company that provides Business Equipment Leasing straight to business owners like you. Examples of such diversified financial companies are banks as well as Business Equipment Leasing specialists. Many times, since small business owners are already well connected with banks, these are the companies that act as Independent Lessors to small businesses that need Business Equipment Leasing or that the small business owners turn to first.

If you are not interested in buying the equipment you lease after the term of the lease has been completed, then always opt for a short-term lease at the onset. Sometimes this is good because some business equipment (particularly computers) become obsolete fairly quickly so you don’t want to be saddled with this old equipment which you will find useless soon after. If you can get a lender that offers Business Equipment Leasing with an upgrade stipulation built into the contract that would benefit you because it means the cost of an upgrade has been factored in. Your old equipment gets an upgrade and business continues for you and your lessor after the upgrade has been implemented. Everyone wins.

Sean Marten asked:

Your competitors are offering quotes to customers who could be buying from you. Don’t lose these sales! Statistics prove that 80% of prospects who plan to finance equipment will accept your monthly payment option.

Do most of your customers pay cash? Consider those who don’t, or those who can’t. Presenting them with choices could open doors for them and increase sales for you. For example, maybe they need additional equipment, but can’t spend the cash up front. When you offer financing options, your client’s purchasing power is increased and his money works harder and smarter.

Waiting for the customer to ask about payment options? Don’t. Initiate the financial discussion so they don’t have to. Customers don’t want to be perceived as unable to afford your equipment. You don’t want to be perceived as being inexperienced, or worse, unconcerned about their business. Get payment options on the table up front and they will become more comfortable and more focused on your presentation.

Are you bringing up payment options only when you think the prospects can’t pay cash? Making that determination could be costing you money. Offering options to every prospect will make money for you. Differentiate yourself from the majority of your competitors. Many equipment sellers still fail to present financing proposals to their clients. Use the financing option as a simple but effective close: Will you pay cash or may we arrange financing for you?

Do your customers have their own sources for financing? Offer them an option and give them the opportunity to make a change. Customers are looking for a total business solution and part of what you sell is customer service. Payment options should be included in that service. Your customers will appreciate the one-stop shopping aspect of doing business with you.

Don’t lose another buyer to sticker shock. Follow the proven success model of the automobile dealership. Much of their success results from the financing options they advertise and offer to the buyer. How many cars would they sell if they didn’t? In effect, they are selling monthly payments, often easier than asking for the entire price at once. Follow their example and acquire that 80% of the market who will accept your financing proposal.

Reluctant to get involved in the financial aspect of sales? Don’t be. Instead, take control. Build a relationship with a lender who offers simplicity in the application process and promptness in the approval process. You’ll avoid the pitfall of giving the client a list of lenders to contact on his own, where he risks being turned down. The end result could be your loss of the sale. When you secure the financing, you maintain control of the sale.

Syndicated asked:

Syndicated Leasing is the market leader and specializes in equipment leasing services.

The equipments and the technologies used in business can be quite expensive and requires alot of capital to be invested. Leasing is a convenient way to acquire the equipment your business needs-without all the hassles. Leasing business equipment and tools preserves capital and is considered a better option than bank loans. Also in bank loans you are required to deposit a substantial amount of your capital as down payment and usually require extensive documentation and often require collateral.

Business equipment leasing is a loan which is taken for buying business equipments. Business Equipment leasing can include leasing of office equipments, computers, printing equipments, software and much more. Leasing is especially attractive if your business relies upon cutting-edge technology such as the latest computers, communications devices or other equipment. A series of short-term leases will cost you less than buying new equipment every year or two. Signing terms on a lease can allow even small companies to deploy expensive systems very quickly and without tying up a dangerous amount of cash in said systems.

With Syndicated Leasing (Equipment Leasing Company California) ability to lease just about any type of equipment, leasing can help you conserve cash, preserve lines of credit and keep your business on the leading edge. After visiting http://www.syndicatedleasing.com/ you’ll get to know how a leasing company like syndicated leasing can provide you with the greatest leverage for all your equipment leasing needs. Our business equipment leasing and financing options can provide you with an equipment financing solution. Syndicated leasing provides business equipment leasing, heavy equipment leasing, capital equipment leasing, transportation equipment leasing and heavy construction equipment leasing to small and large business firms. Leasing business equipment and tools preserves capital and provides flexibility but may cost you more in the long run.

We encourage you to visit http://www.syndicatedleasing.com/ , discover a range of equipment leasing services and gain a better understanding of the overall leasing process.

G M Stephens asked:

A modern day gold rush is underway. With gold prices at an all time high more and more gold seekers are heading into the gold mining fields of Arizona, Nevada, California, New Mexico, Alaska and many other places across the U.S. and other gold bearing areas of the earth. In the gold mining and prospecting world you can now routinely hear of men and women gold seekers spending thousands of dollars on gold mining and prospecting equipment they have never used, having no experience finding gold and buying worthless gold mining claims with hopes of striking it rich. Those who are mining the miners are in the real gold.

Recreational gold mining and prospecting has become a popular outdoor recreation in a number of countries, including New Zealand (especially in Otago), Australia, South Africa, Wales (at Dolaucothi and in Gwynedd), in Canada and in the United States especially in western states but also elsewhere. Recreational gold mining is almost entirely small-scale placer mining.

Placer gold mining is the mining of alluvial deposits (deposits of sand and gravel in modern or ancient stream beds) for minerals. This may be done by open-pit (also called open-cast mining) or by various forms of tunneling into ancient riverbeds. Excavation may be accomplished using water pressure (hydraulic mining), surface excavating equipment or tunneling equipment.

The name derives from Spanish, placer, meaning “sandbank.” It refers to mining the precious metal deposits (particularly gold and gemstones) found in alluvial deposits. The metal or gemstones, having been moved by stream flow from an original source such as a vein, is typically only a minuscule portion of the total deposit. The containing material may be too loose to safely mine by tunneling. Where water under pressure is available, water under pressure may be used to mine, move, and separate the precious material from the deposit.

Gold mining and prospecting activities allowed on public lands vary with the agency and the location. Gold pans and shovels are commonly allowed, but sluice boxes and suction dredges may be prohibited in some areas. The Department of Agriculture in the U.S. is now of the view that recreational gold panning and gold prospecting in national forests is permitted provided that no machinery or explosives are used, no waterways are diverted, and no permanent or semi-permanent structures are built. There are public mining areas in many states, and prospecting may allow one to stake a gold placer claim or other type of gold mining claim in certain areas. Some public lands have been set aside for recreational gold panning. Some private land owners also give permission for small-scale gold mining.

The Gold Prospectors Association of America (GPAA) is an organization dedicated to finding and mining gold on a small or recreational scale. It has gold claims across America and members can work the claims for a yearly fee. The club is headquartered in Temecula, California. Most, if not all GPAA activities are in the United States. The organization was founded in 1968 to preserve and promote the great heritage of the North American Prospector. The association greatly frowns upon mining methods that harm the environment, and is against anti-prospecting bureaucracy.

The beauty of this new gold rush is we get to experience it and see the successes and failures as they unfold in the gold fields. Gold Mining and prospecting equipment sales are at an all time high, advertising in gold prospecting and mining magazines is being sold at premium prices and the BLM is processing more gold claims than anytime in the last 20 years. Metal detectors costing $4,000.00 plus designed for gold are selling like gold pans in the days of the gold rush of the 1800s. This is a very exciting time to be a gold prospector.

gold prospecting gear

Marlene Affeld asked:

historic man first stumbled upon a nugget, raw gold with its radiant sun yellow coloration and metallic luster has captivated and fascinated mankind. The unique gleam of gold attracts the eye, enabling the seeker to detect the smallest of grains in an aggregate of many other materials. The tiniest flakes are easily detected.

Anthropological excavations of Stone Age burial sites indicate that gold was the first element collected and prized by man. This unique metal, gathered in the form of nuggets, seems to have been highly prized but was not used in practical applications. Rating 2.5 ? 3 on Mohs scale of hardness, gold was much too pliable to be hammered into workable tools or weapons. Gold carried little value for prehistoric man except to be admired and treasured for its rare, intrinsic beauty.

However, as man developed he soon discovered numerous applications for the mysterious golden metal. The earliest record of gold exploration dates to Egypt around 2000 B.C. Ancient records tell of an enormous alluvial gold deposit in Nubia, between the Nile River and the Red Sea in southeastern Egypt. This incredible discovery encompassed over one hundred square miles. Using the most primitive of tools and working to an average depth of less than six feet, these first ?miners? pried an estimated one thousand tons of gold from this rich discovery. Egyptian artisans, recognizing the extraordinary malleability of gold fashioned incredible jewelry, ornaments and idols of breathtaking beauty. Throughout the history of man?s involvement with gold, the precious metal has been prized not only for its beauty but for gold?s ability to withstand the rigors of time. No substance that appears commonly in nature will destroy gold. Unaffected by air, moisture, heat or cold, this noble metal will not tarnish, corrode, rust or tarnish. Shimmering gold dust, golden nuggets of placer gold and brilliant vein occurrences have survived 4.5 Billion years of cataclysmic geologic and climate changes; volcanic eruption, earthquakes, upheavals and deposition. Treasures of gold jewelry, bullion and coins, buried for thousands of years beneath land and sea have been found intact; as brilliant as the day they were abandoned.

A relatively rare native metallic element, gold ranks fifty-eighth in abundance amongst the ninety two natural elements that make up the earth?s crust. Although considered a rare element, of all metals gold is, with the exception of iron, the most widely distributed over the planet. Gold has been found on 90 per cent of the earth?s surface and is mined in high mountain ranges, in the deeply weathered soil of the tropics, harsh deserts and in the permanently frozen tundra of the Arctic.

Gold is commercially mined on every continent with the exception of Antarctica. The richest gold producing area of the world is the Witwatersrand District of South Africa. This ultra rich area has yielded eighteen thousand tons of gold with no end in sight. Additional notable gold bearing areas around the world are Siberia in the former USSR, the Porcupine District in Ontario, Canada and in the United States the Yukon District of Alaska and the famous Mother Lode District in California.

In the United States nature was extremely generous. Thirty-two states have recorded significant commercial gold production. The highest yielding areas are located within the western states, California, Colorado, Alaska, Nevada and South Dakota. Other abundant locations for prospecting include Georgia, Arkansas, Idaho, Utah, Montana, Washington, New Mexico, Wyoming, North and South Carolina, Tennessee, Michigan, Vermont and New Hampshire. The recreational gold prospector can find gold in his pan in practically every state of the union.

Gold is an ideal media for craftsmen. It is a metal that can be deformed by pounding without breaking or crumbling. Gold, in its pure form is the most malleable or workable of all metals. One single ounce of gold can be drawn and stretched into an ultra fine wire over 50 miles in length without breaking or pounded to the amazing thinness of one hundred thousandth of an inch without disintegrating. Gold is easily carved, readily buffs to a gleaming polish, can be heated repeatedly without discoloration and joins to itself or other metals by soldering without the need for a bonding flux.

For more than 6000 years gold has been considered symbolic of wealth, power and status. In 1350 B.C. the Egyptian boy king, Tutankhem, was interred in a coffin elaborately cast from 242 pounds of solid gold. Throughout history men and women have adorned their bodies with brilliant, gleaming gold. The ancient custom of exchanging gold during marriage ceremonies continues today. The nobility of Medieval Europe liberally sprinkled gold in the form of dust, flake or leaves on their food to demonstrate the host?s great wealth. Today gold is still often used in food and has the E Number 175. However, since metallic gold is inert to all body chemistry, it adds no taste nor has any other nutritional effect and leaves the body unaltered.

Primitive man believed gold contained a hidden, internal fire, a gift from the Gods with mysterious healing and magical powers. Numerous cultures of sun-worshippers revered gold as the tangible essence of their God; solid sunshine. In modern day Japan believers seek gold?s medicinal magic by immersion in a bathtub designed in the form of a phoenix crafted from 400 pounds of pure gold. Health and gold have long been entwined in the wondrous belief that something so rare and beautiful could not be anything but healing and healthy.

Today modern esotericists and forms of alternative medicine embrace the healing properties of gold. Some gold salts have anti-inflammatory properties and are used as pharmaceuticals in the treatment of arthritis and other similar conditions. However, only salts and radioisotopes of gold are of pharmacological value, as elemental or metallic gold is inert to all chemicals it encounters within the body.

Gold is a ?storehouse of value?, the natural way for man to preserve capital and protect against financial uncertainty or monetary collapse. In modern times gold has served as a hedge against the threat of inflation and as a secure and safe way to secret away assets. The ?hoarding? of gold occurs most frequently during times of war, adverse world conditions and international fears of economic instability. Gold has often defeated the attempts of governments to inflate the currency of their country as well as circumventing the aims of those holding political power to direct the economy of other nations.

Throughout recorded history, gold, the crowned king of metals, has been considered the ultimate monetary exchange. Gold is the only currency that isn?t someone else?s responsibility or liability; it is more that just a paper promise to pay upon demand. Gold?s worth does not rely on the economic stability of any country, political power or financial cartel. Gold has value in and of itself.

The current world price of gold is established daily by the London Gold Market which trades gold bullion and coins with other financial world centers such as Zurich, Hong Kong , Frankfurt and Paris. The price is based on pure or ?fine? gold, therefore the value of gold gleaned in its natural state may vary depending on the impurities it contains. However, raw gold sold as specimens or jewelry will always bring a considerably higher price. Gold nuggets are as distinctively different as snowflakes, although similar, no two nuggets are alike. A nugget of unique character and shape may sell for as much as five times its value by weight.

Do you have broken or discarded gold jewelry you not longer wear? Now may be the time to cash in on the current gold rush. With the price of gold exceeding the $1000 an ounce benchmark, an errant earring or broken gold chain could add up to a significant sum.

To receive the best price for gold you may wish to sell, know the karat count. Because of the softness of pure 24k gold, it is usually alloyed with base metals for use in jewelry, altering its hardness, color, melting point and ductility. Alloys with lower karatage, typically 22k, 18k, 14k or 10k, contain higher percentages of silver, copper or other base metals in the alloy. The higher the karat the more you should expect to be paid. If you only have a piece or two to sell, try a local jeweler or take a vintage piece to an antique jeweler. They?ll take the artist?s craftsmanship into consideration and you will net a much higher price than for just the gold weight.

gold prospecting gear

Christine Harrell asked:

Many people today dream of owning a business. Being your own boss can be liberating, not to mention profitable. However, small businesses have a disturbingly high failure rate and the new owner wants a prospect with a proven history of success.

Franchises give entrepreneurs the opportunity to open a business with an established regional or national brand identity. With a plan to follow and experts to consult, your chance of success soars. Franchising is the path of choice for the slightly more conservative entrepreneur.

The downside of franchises is that they are often quite expensive, more so than starting a business under your own name. Coming up with the initial capital can be tough and preserving your assets is paramount. One of the largest expenses is equipment financing. When stocking your franchise with equipment, leasing rather than buying is the more cost effective solution.

Start up equipment leasing

The initial franchise fee buys you assets such as the right to use the brand, initial training, and long-term consultation to keep your business running profitably. You still need to acquire the equipment necessary to run the business.

For example, let’s say you buy a franchise of a successful, well-recognized steak house but you need tens of thousands of dollars worth of stoves, tables, and plumbing fixtures. Rather than taking out a huge loan to equip your restaurant, equipment leasing allows you to get the kitchen and dining room furnished without depleting your valuable capital.

Financing upgrades

When you own a franchise, you aren’t truly your own boss. You still have to make changes at the whim of the parent company in order to preserve the brand. Sometimes this is something simple like integrating a national ad campaign into your local marketing efforts or changing a few options on the menu. Sometimes it’s more complicated and expensive.

Parent companies look at the national or global impact of their decisions and project the financials years in advance. They reason that a short-term loss in assets, say from upgrading their restaurants nationwide, is worth it for a long-term boost in profits.

On the multi-billion dollar corporate level that might be fine, but the cost of upgrades can be devastating to the local franchise owner. Small business owners don’t have the deep pockets of the parent corporations and it can be daunting to face the prospect of substantial debt in the hope of future profit.

For a small business, equipment leasing allows significant upgrades to be done in a more cost-effective and less financially damaging manner. You don’t have to squander your resources nor risk your credit rating on expensive new purchases.

Although you may be part of a national or global franchise, you are actually a small business owner. You have the benefit of consulting with experienced support personnel at the parent company, but you are operating on a tight budget and can’t afford huge equipment costs. Equipment leasing is the smart choice for franchise owners.

Christine OKelly asked:

If you own your own construction business, most likely you’ll need to buy new equipment when you’re just starting out or will have to add to an existing fleet of construction equipment. Is your business in the position to pay cash and still have an emergency fund left over? Most small businesses can’t and will need to find equipment financing.

If you need help with construction equipment finance, it isn’t as easy as walking into a store and buying the first thing you see. Instead you’ll have to research and figure out what equipment you need, decide if you want to buy a new or used piece and then talk to a bank or construction equipment finance company about a loan.

What Kind Of Equipment Will You Need?

The first thing you’ll have to do is determine what type of construction equipment your business needs. It’s a good idea to tell the construction equipment finance company what you’re looking for so they’re able to give you the right type of loan. A truck used to get between job sites will have different loan terms than a less expensive piece of equipment.

Can You Afford New, Or Is Used The Way To Go?

Is your equipment financing going to be used for new construction equipment or would you like to shave a few dollars off the price by buying used? After determining what type and brand of equipment, it won’t hurt to look into the used price. If the construction equipment is going to be used as primarily a back-up, buying used might be a good idea. You can usually find used equipment that’s reliable enough for daily use, so do a little research and see if buying used makes sense.

Look Into Construction Equipment Finance Companies

Even if you have the available cash to buy immediately, looking into construction equipment finance companies for your equipment financing is a good idea. That way you’re able to hold onto your available cash in case of a business emergency. Many people immediately think of their local bank branch when looking for a loan. Local banks can be a good place to begin, but a company that specializes in equipment financing will have more knowledge on construction equipment finance.

Look for a company with their own underwriting department. Having that in-house means you’ll have a shorter wait for an answer to your application. You’ll also receive your money faster which means you won’t have to wait long to order the equipment you need.

You can also find equipment financing companies that offer leasing and that can be a great, lower-cost solution for seasonal businesses or companies that are just starting out.

If you’re concerned about tying up your available business funds, look no further than a construction equipment finance company when it’s time to add to your equipment inventory. Because they deal with equipment financing on a daily basis, they’ll be a great resource for your business.

Christine OKelly asked:

In order to run a business smoothly and effectively, it is vital that business owners have access to all of the equipment and supplies that are required by their industry. A construction company cannot function without its workhorses, a corporate office needs computers and other technology in order to reach out to clients and business partners, and restaurant owners cannot deliver their specialties to hungry patrons without the right kitchen equipment.

However, many businesses cannot outright afford these vital pieces of equipment, and are at a loss of what to do until they can bring in the right equipment that they need. This is where the concept of equipment leasing and used equipment financing comes from. It allows companies to get the supplies and equipment they need even when they cannot outright afford to purchase them.

Equipment Leasing

There are numerous benefits to equipment leasing, three of which make the process of equipment leasing more logical than trying to buy the equipment on your own. Equipment leasing from companies specializing in equipment rentals offer quick approvals because each and every request is reviewed personally. Equipment leasing also offers unique, flexible terms including seasonal schedules, custom terms, and stepped payment plans.

Finally, with equipment leasing you can expect a minimal amount of paperwork, including an extremely short and easy application form to get the ball rolling. Because most companies that lease equipment are direct underwriters, they can individually review and approve your request without having to involve a middleman. Because these companies are not governed by the same restrictions that banks are required to follow, competitive rates can be offered that benefit businesses desperate to get the equipment and supplies they need.

If you have a business that is well run, but your industry is tough to finance, or if you are looking for terms that are both flexible and take your unique needs into account, then either equipment leasing or used equipment financing may be the right option for you.

Used Equipment Financing

Used equipment financing is another excellent option for businesses that cannot operate without the necessary equipment, but also cannot afford to finance the equipment on their own. Financing solutions from used equipment financing companies are usually excellent for businesses that are struggling with a limited cash flow but that cannot allow that to deter them from getting the equipment they need.

Used equipment financing is offered for a large variety of different industries, including construction, industrial, office and computer, landscaping, restaurant, transportation, recreational, seasonal and a great deal more. By financing used equipment, businesses that are low on cash flow can still get the equipment they need, but they do not have to pay what new equipment would cost. This is the main reason why used equipment financing is such an advantageous avenue for startup companies. New businesses and industries inherently difficult to finance will especially benefit from these business solutions.

Razvan Jr asked:

Equipment Leasing Overview

Equipment is a fundamental part of any business, whether small or large. It is with equipment that businesses render the services that they do. The quality and quantity of equipment a company uses, together with how the company deploys such equipment makes the difference between success and failure in a highly competitive economy.

When it comes to the hardware of a business, companies often prefer to go the extra mile to purchase equipment that will give them an edge in whatever industry they operate. While this quest for better machinery is laudable the methods in which it is obtained are not.

Purchasing equipment off manufacturers’ shelves is a decision most companies choose to take and they do so quite wrongly. In a business, the value of an asset is in its use and the value of that same asset depreciates with its use as well. Equipment is an asset, which satisfies this truth only too well, you buy some expensive piece of machinery, which looks good on your balance sheet, and in the next 4 years its value depreciates to nothing.

Equipment Leasing is the correct option as opposed to buying when your company needs equipment. Equipment is a tool that must be used to its maximum capacity to provide the service your business offers. In this light company should aim to save themselves the wanton waste of money that goes with purchasing equipment and should explore the benefits that come with leasing equipment instead.

Leasing equipment is not an aim at cutting corners or reducing the needed service quality delivered by a business. Equipment leasing is a proactive means of increasing your company’s cash flow that would otherwise be tied down if you considered the purchasing option. This cash flow could impact on other areas of your company’s business and improve your company’s balance sheet in the profit columns. Cash should not be tied down in a quickly depreciating asset such as bought equipment.

Benefits of Leasing

If you’re considering leasing equipment for your company rather than buying, you’re not alone. Statistics have it that over 80 percent of U.S based businesses lease their company equipment as opposed to buying, so you can remain rest assured that it’s a wise decision. To support this fact we offer you some of the financial benefits of commercial equipment leasing.

Financial Benefits of Leasing

These financial benefits of leasing cover how leasing helps your business improve its financing either by saving money or making more money for your company. The list is hardly exhaustive but the points examined here are the strongest and reflect the areas of finance that are most important to a business.

Increased Working Capital – With equipment leasing you save yourself the cost of buying the equipment outright. The money you save from purchasing the equipment can be deployed into other areas of the business. Obtaining a business equipment lease also preserves the line of credit you have from your bank as the financing you use to obtain the leased equipment is much lesser outright purchase. By saving this money you can improve your business edge with the right equipment, turn a better profit and not only retain your existing credit line with your bank but improve it as well.

Improved Balance Sheet – In business the balance sheet is an all too important area of determining performance, not only to your shareholders but also to people who provide major financing such as banks and prospective investors. This improvement comes in various areas: first of all business equipment leases are not recorded as liabilities and thus do not have a bearing on your capital figures. The second area covers the fact that a fixed equipment lease eliminates the need for depreciation, if you had purchased the equipment the cost of the equipment is written off according to use and affects your balance sheet calculations.

Tax-Related Advantages – With a commercial equipment lease your expenses are listed as direct operating expenses, which ultimately lead to a lower taxable income for yourself and your company. Another advantage that makes sense when you compare your leasing arrangement to a purchase is that if you had purchased the equipment, sales tax would then be applied and added to the costs accordingly. In some cases when you lease equipment, sales or use tax is then deducted according to the use of the leased equipment. Whatever the case you should consult with at tax professional to examine the benefits that apply to your company specifically in a lease situation.

Milton Franklin asked:

Equipment leasing is intelligent decision making, especially when compared to bank loan financing or cash purchases. Investing cash reserves in equipment makes the business enterprise asset rich and cash poor. When a business is cash poor, it is severely limited in its ability to take advantage of new opportunities or to adequately respond to changing market conditions.

Today, more than 80% of all U.S. corporations lease some or all of their equipment. It is the use of equipment, not ownership of equipment that generates profits. This simple precept explains the rise of equipment leasing activity, especially as equipment life cycles shorten in this high-tech age. Whether opening a new business, expanding existing facilities or opening an additional location, the method you choose to acquire equipment can have a profound impact on your business, credit and cash flow.

Secret #1:

Virtually all types of equipment in almost any industry can be leased. Leases are specific. You can choose the manufacturer, the model number, the source and even accesories. You’re covered by all conventional manufacturers’ warranties. And because lease payments are usually lower than other forms of financing, your leasing dollar allows you to acquire more of the equipment your business needs or more advanced equipment. With an equipment lease, you get 100% financing so the amount of cash needed up-front is reduced. Most soft costs can be included: delivery charges, installation, training, and software to ensure that the equipment is productive immediately, speeding your return on investment.

Secret #2:

Bank loans can be dramatically more expensive than anticipated because of the large security deposit that is required. Down payments for bank loans will usually range between 20% and 40%. The result is that there is a tremendous difference between the effective APR and the stated APR. A stated 8% bank rate with a 25% down payment is actually equal to a 21% APR on a five year loan.

Secret #3

Even if you have the cash to purchase your equipment, purchasing is rarely, if ever, the best choice. With equipment leasing, cash can be used for other business requirements such as expanding sales, starting new marketing programs, offering quantity discounts, replenishing inventories, opening a new line of business, or increasing cash reserves. Using cash for necessary business expenses that cannot be financed is much more intelligent decision-making than spending it on equipment that is worth less and less as time goes by. Not only are there higher payments for traditional financing, but you’ll have to come up with the entire amount for a cash purchase or a substantial down payment with a bank loan if you decide not to lease.

Secret #4

With the lower, fixed-rate payments of an equipment lease, you’re protected against inflation. Cash outlays are deferred, as compared to an up-front purchase. In the future, “cheaper” dollars will be making your lease payments as inflation lessens your cost. You will be making your monthly payments to the leasing company with ever-inflating dollars during the term of the lease. This actually reduces the cost of financing to you in real dollars, a tremendous advantage that is often overlooked.

Secret #5:

Leasing equipment offers a wide range of benefits, from consistency with expenses to increased cash flow. But perhaps the most significant advantage of leasing is the ability to maintain up-to-date equipment. Leasing allows you to easily and affordably add equipment or upgrade to a completely new piece of machinery to meet future needs. This lets you transfer the risk of being caught with obsolete equipment to the leasing company.

Secret #6:

With the scheduled updating of your business equipment offered through equipment leasing, you can maintain a competitive edge, keeping you ahead of your competition. With an equipment lease, upgrading to newer technology during or after the lease is easy. In contrast, when equipment is purchased with cash or bank financing, there is an incentive to postpone any upgrade until the original investment has been recouped through depreciation, which hinders your flexibility. A planned replacement program avoids obsolescence and keeps you up to date with the latest state-of-the-art technology. An additional, often-overlooked disadvantage of ownership is equipment disposition. Ownership of equipment, the result of the full repayment of bank loans or cash purchases, includes several additional costs that are significant and can be avoided with leasing. These costs are associated with removal, environmental fees for disposal (for certain equipment categories, such as computers) and the costs of remarketing.

In summary, there are many “Secrets of Equipment Leasing” that require significant research to uncover. These “Secrets” can be determining factors in the survival and profitability of any business enterprise. As such, they warrant in-depth consideration to determine their potential contributions to every individual equipment acquisition situation. Nearly 100% of the time, bank loans and cash purchases are always significantly less beneficial and less advantageous than equipment leasing.