Benefits of Equipment Leasing by Tess Lawson Benefits of Equipment Leasing by Tess Lawson Equipment Leasing remains one of those terrific, convenient tools for the business professional today. Even in this uber-competitive world of record long standing and low interest rates and where incredible quantity and variety of conveniences for the businessperson are being offered through new technology and the web every day, Equipment Leasing cannot often be beat. Here are a few reasons you may not have even considered: 1) When was the last time your banking account manager was changed? Typically, most leasing companies are only small to medium size businesses. Their staff and your account manager’s client relationships are the lifeblood that keeps them in business. It seems that banking management, tellers and account executives change every 3-4 years – if not sooner. They get promoted, moved or simply taken off of your account. The result? Familiarity CANNOT be attained. This move is more frequent than people realize. 2) Interest Rates for Equipment Leasing in the Professional sector start at the 3 year bond + 3.25 basis points -that's just below 7 percent. You can have your cake and eat it too: your full borrowing power, full line of credit at your bank as well as an equal amount of additional borrowing through a 'private' lease line (that typically is not reported to your bureau -unless in default) and that will finance any leasehold improvements, software & service contract and of course, all equipment leases. 3) Recently I had a medical industry client call me to request a quotation on a “meet or Beat” basis. The equipment was an X-ray machine and the pricing as it read on the Vendor’s quotation was $21,000 before tax. Not unlike vehicle leasing, this rate may be part of a ‘Vendor Program”. Vendor Programs can be excellent however you should familiarize yourself with how they work: IN some cases the Vendor may initilally be receiving less of a payment on his product thatn your quotation from them states. He may only be receiving approximately $18,725.30 for his X-ray machine. Consider what this might be doing to the integrity of your warranty, service, installation, etc. If you are confident that your warranty, delivery etc. will remain 100%, excellent but also realize that you may still be getting equivalent quality product for less from another supplier. As with the acquisitions of any assets, depreciating or not, shop and compare for straight forward professional financing quotations. Check for a 1--% full disclosure stating if a Vendor Program is in place or not. Need to work with a financing expert? Call a leasing company and start a banking relationship that will last. A leasing company can look after important banking, financing as well as accounting matters effectively freeing you to do the things you are professional at. If you have any questions on this or any other debt financing related topic we would love to hear from you: if we don't have the answer for you - we will find somebody who does. That's our promise to you. Benefits of Equipment Leasing by Tess Lawson THE BAILEY CAPITAL FUND www.baileycapitalfund.com @Business Growth 2005 "Growing Small Business"