Equipment Leasing

1. At the end of equipment leasing you can choose to purchase or return the merchandise. True Equipment leasing companies give you several choices. You do not own the merchandise during the term of the contract but are responsible for insurance, maintenance and all other costs of ownership. At the end of the contract, you have the option to buy, re-lease or return the merchandise to the owner. Oftentimes if you choose to buy, whatever has been paid through the rental goes towards the total purchase price. Returning the merchandise in the same condition received is important. This will allow you to avoid any penalties or additional charges. 2. It is wise to research equipment leasing options in order to make an informed decision. True There are many types of options to choose from, so make sure to research before making a decision. Getting quotes from multiple equipment leasing companies is also a good idea. Find out about interest and fees that may be included with the transaction. If the equipment will only be used for a limited amount of time leasing is cost effective over buying. 3. There are tax benefits for equipment leasing. True Renting merchandise provides great tax benefits. Renting equipment is a business operating expense and deductions can be taken from the entire amount instead of just depreciation. Working with your tax accountant will ensure that you are getting the most tax benefits. Be sure and keep all receipts for tax purposes. 4. Equipment leasing companies allow you to not have to pay high up front costs. True When renting merchandise most companies allow you to make monthly payments rather than paying all of the money up front. Equipment leasing companies usually offer lower monthly payments than other forms of financing. Businesses that are budgeting may consider renting machinery for the lower monthly payments it offers. This also gives companies an opportunity to try before you buy. 5. Equipment leasing can be a way to practice wise financial management. True Luke 12:48b - From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked. Small Business