QUESTION: Is paying cash the best way to purchase equipment?
ANSWER: Not necessarily
Many customers purchase equipment with leasing when they have the cash in the bank. Here are some of the reasons why:
- Better use of cash. Whether that means using for non-equipment expenses like expansions, renovations, employee benefits and the like, or saving it for a rainy day, or spending it on the most important person in your company…you! Your cash can work for you in many better ways than in equipment.
- Pay for equipment during use, not in advance. Your wouldn’t pay your employees salaries 2-5 years in advance would you? Neither should you pay for your equipment before you use it either.
- Technology is speeding up the work at an ever increasing pace. It is also causing equipiment to be come obsolescent, generally much faster than we imagine when we purchase the equipment. Leasing means that your cash is not tied up into a rapidly depreciating asset, protecting your bottom line.
What is the best for your business both now and in the future?
As your business grows, will you wish that you had that cash when an opportunity comes up to make a smart investment that requires liquidity? Only you know what your business needs will be. If you’re unsure, let’s talk, so you can make the best business decision for you.