We just wanted to inform everyone that United Show Case will be closed July 3rd - July 12th.
Have a wonderful holiday weekend!
- United Show Case
United Show Case Vacation ...
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We just wanted to inform everyone that United Show Case will be closed July 3rd - July 12th.
Have a wonderful holiday weekend!
- United Show Case
We just wanted to inform everyone that United Show Case will be closed July 3rd - July 12th.
Have a wonderful holiday weekend!
- United Show Case
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Monday, June 29, 2009
Cash Flow and Equipment Leasing
The following letter was sent us by Sterling Capital Leasing, its a very informative read:
CASH FLOW AND EQUIPMENT LEASING
Together More Than Ever
According to oil baron J. Paul Getty:
"If it appreciates, buy it. If it depreciates, lease it."
Getty's thoughts are words to live by for all types of business owners. There are many benefits to both buying and leasing, depending on the type of property involved.
Businesses have two property types - Real and Personal. Real property encompasses buildings and the land on which they stand. Personal property includes furniture, fixtures, and equipment - everything from shelving to desks. Buying is often most beneficial when financing Real property, because it will appreciate and gain value over long haul.
However Personal property (equipment) depreciates in value rather quickly. Why put your cash into something that will go down in value? In today's economy with cash flow worries, it makes even more sense to lease instead vs. purchase equipment. Equipment purchased with cash must be paid for long before it can generate any profit; but under a lease, the equipment is paid for as it generates profits. Leasing provides an important safety valve by not tying up all of your capital.
Also credit lines that are used to pay for the day to day business expenses need to always be accessible. However due to the credit freeze over the past 6 months, many business owners have been denied requests to increase or even maintain their credit lines with their banks. This recent trend places even more value on leasing. By acquiring equipment through a lease, your precious credit lines remain open to keep your business running smoothly which enables your company to grow.
If your goal is to simultaneously grow your business and have a healthy cash flow in an uncertain economic future, then strategically position your business to thrive and remember Getty's rule of thumb;
"If it appreciates, buy it. If it depreciates, lease it."
Please give us a call and we will be happy to serve you.
Sterling Capital Leasing - We help companies grow.
CASH FLOW AND EQUIPMENT LEASING
Together More Than Ever
According to oil baron J. Paul Getty:
"If it appreciates, buy it. If it depreciates, lease it."
Getty's thoughts are words to live by for all types of business owners. There are many benefits to both buying and leasing, depending on the type of property involved.
Businesses have two property types - Real and Personal. Real property encompasses buildings and the land on which they stand. Personal property includes furniture, fixtures, and equipment - everything from shelving to desks. Buying is often most beneficial when financing Real property, because it will appreciate and gain value over long haul.
However Personal property (equipment) depreciates in value rather quickly. Why put your cash into something that will go down in value? In today's economy with cash flow worries, it makes even more sense to lease instead vs. purchase equipment. Equipment purchased with cash must be paid for long before it can generate any profit; but under a lease, the equipment is paid for as it generates profits. Leasing provides an important safety valve by not tying up all of your capital.
Also credit lines that are used to pay for the day to day business expenses need to always be accessible. However due to the credit freeze over the past 6 months, many business owners have been denied requests to increase or even maintain their credit lines with their banks. This recent trend places even more value on leasing. By acquiring equipment through a lease, your precious credit lines remain open to keep your business running smoothly which enables your company to grow.
If your goal is to simultaneously grow your business and have a healthy cash flow in an uncertain economic future, then strategically position your business to thrive and remember Getty's rule of thumb;
"If it appreciates, buy it. If it depreciates, lease it."
Please give us a call and we will be happy to serve you.
Sterling Capital Leasing - We help companies grow.
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