Equipment leasing and equipment financing are often seen as similar, and in a big picture sense, they are (you get equipment, and you make payments on it). But the details of the two are quite different, with equipment leasing having many more moving parts and somewhat arcane terms. For the next few posts, I’d like to go over… Read More »
Let’s wrap up my little “leasing and accounting” series by going away from the complicated, and embracing the simple. People ask me all the time “what is the best type of payment structure for my business, leasing or financing?” And I always answer with another question: “what is your company goal in wanting this transaction?” Here are the… Read More »
I mentioned opportunity at the end of my last post. Let’s expand on that. As we navigate through what is proving to be an extremely “different” business environment, I am reminded of a local planning board meeting I attended a few years ago. Under discussion was a recent blight of failed businesses, and some empty buildings on the… Read More »
My last post mentioned a new type of equipment financing customer we are seeing: the company that used to pay cash for everything who is now starting to finance equipment purchases. And they are doing this to keep their own money safely in the bank while they make monthly payments on equipment. So now, I will ask once… Read More »
Moving along in our current lease discussion, let’s talk about the 10% purchase option lease. Essentially, the 10% purchase option lease is similar to the $1 buyout lease we discussed last time (this post will answer a common question I get: “what’s the difference between a $1 buyout lease and a 10% purchase option lease”, to which I… Read More »