Buy what appreciates, Lease what depreciates!
The dictum above is attributed to John Paul Getty, but do you follow his advice?
It’s the “age old” question, Cash or Lease?
So you pay cash for your equipment, you have your equipment but you don’t have your hard-earned cash anymore. If you didn’t have the cash in the first place and used your bank facility instead, that’s gone now as well, so let’s hope you don’t need a cash call for working capital for a while.
Ultimately there is little benefit to owning new technology, the benefit comes from the use of the technology. Finance provides the affordability and technological efficiencies your business requires. All without the cash investment and the pressure this can in-turn exert.
Check out our article on everything you need to know about leasing or discover the top ten reasons why companies lease.
