Wednesday
March 10, 2010

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About Leasing

Leasing has increasingly become the financing vehicle of choice for over 85% of American businesses, and 70% of Fortune 1000 companies. In 2000 alone, annual leasing volume in the United States exceeded $280 billion, over 30% of all capital investment in equipment.

The Wall Street Journal

One of the main reasons leasing is such a popular financing alternative for business centers on two key economic principles – scarcity and choice. Limited financial resources prevent most companies from taking advantage of every business opportunity. As a result, most businesses are forced to choose only the investments that yield the highest return. However, leasing frees up cash, enabling you to extend your scarce dollars for more investment alternatives.

When you need equipment, the general guiding rule is:

"If the asset appreciates, buy it.
If it depreciates, lease it.”


 
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