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To Lease or Not To Lease
Leasing is often a practical and convenient option to take, but it is not
always the best path. Consider also, commercial hire purchase, loans and
outright purchase.
Checklist
 | Will acquisition of the financed item really improve your net cash
flow or profit?
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| Will your cash flow comfortably meet the cost of the financing
package?
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| Have you shopped around for competitive quotes on leasing, commercial
hire purchase and loans?
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| Have you analysed the tax and depreciation benefits of each option?
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| Have you considered the total cost of each option?
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The Alternatives
Assuming that the item to be acquired will improve the business' cash flow
or profitability, the financing choice will be a function of cost, interest
rates and depreciation allowances.
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Leasing - finance or operating leases are available.
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Commercial Hire Purchase.
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Loans.
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Utilisation of existing cash resources.
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