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Equipment Leases
- Thread starter hatmanok
- Start date
Letterbox Mike
New Member
Leasing is just a way to leverage cashflow against equipment. Done wisely it's no different than any other investment. I'd rather spend $100k on marketing than spend it on a piece of equipment. I'll spend somebody else's money on the equipment and gladly pay them interest on that. It's a cost of doing business, but investing your own cash into marketing is going to net you a measurable return on investment that's significantly bigger than the ROI you'll see on spending that money on equipment instead. If you send every penny on equipment, you'll have none left over to market what that equipment can do for you. Borrowing money in and of itself isn't bad, as long as it's done wisely.
OP: if you don't mind working with someone in Ohio, PM me your contact info and I'll refer you to someone I highly recommend. We've done 5 or 6 leases with them and they've always bent over backwards for us.
Billct2
Active Member
I have leased to own several times, at the end of the lease there's a $1 buyout.
I must get a fax a week from an equipment lease company. The dealer should have one available. Then go on line and compare.
Also you can consider getting an equipment loan from your bank, a credit union or web based lender.
I must get a fax a week from an equipment lease company. The dealer should have one available. Then go on line and compare.
Also you can consider getting an equipment loan from your bank, a credit union or web based lender.
Mosh
New Member
Hope a lease works for ya....I like not having a "payment monkey" on my back every month. I bet you also have a car payment too....LOL! Couch payment? The reason the economy is in the shape it is, too many peolpe doing spending money they don't have....If you had the money for it, there is no way you would even consider a lease? Right?
Mosh
New Member
So I have $10 and I want to buy a $10 printer or lease one. I lease, and it cost me $12, so I use $10 over the period of the fleece, and then have to come up with another $1 interest, then at the end of the lease give it back, or give them another dollar? This IS how it works!!!
Why not just pay the $10 and own it and not worry about it? Your logic is to pay $12 to keep it? Right? For a $10 printer!
No wonder the economy is f'd up, people thinking this is OK!!!! Do you cash you checks at the paycheck advance stores too???? Rent Couches and TV's???
Why not just pay the $10 and own it and not worry about it? Your logic is to pay $12 to keep it? Right? For a $10 printer!
No wonder the economy is f'd up, people thinking this is OK!!!! Do you cash you checks at the paycheck advance stores too???? Rent Couches and TV's???
Speedsterbeast
New Member
Mosh, I don't think you fully understand the subject. And this coming from a 38 year old with zero debt (including a home, sailboat and business owned) I totally get not wanting debt of any kind, but if you can buy a car (or equipment) at a lower interest rate than you have your money earning in safer investments, then it makes sense (and money) to borrow. Although this is on paper. I myself have the money before I buy it, although I'm aware this is sometimes financilaly irresponsible, I, like you, just am wired to not like having debt. Period.
HDvinyl
Trump 2020
People take the $10 they would've spent on the printer and turn it into $18. Extra stripper pole money.
Letterbox Mike
New Member
Example:
I have $100,000 to spend.
I can spend the $100k cash on a printer. Cool, I've got a fancy new printer. Nothing to run on it but hey whatever, I've got it and I don't owe anything on it.
Or I can pay someone else $15,000 (over 5 years) to spend THEIR $100k on that printer for me. Then I can invest that $100k of MINE into growing my business. If I play my cards right, I could turn that $100k into potentially $1,000,000 or more in new sales over the same time period.
One of those makes more sense than the other, to me anyway.
The stupid thing to do wold be to borrow someone else's money to buy equipment you have no need for, without investing in your company at the same time. I.E. living in a mobile home but driving a Ferrari because you could get approved for the loan.
I have $100,000 to spend.
I can spend the $100k cash on a printer. Cool, I've got a fancy new printer. Nothing to run on it but hey whatever, I've got it and I don't owe anything on it.
Or I can pay someone else $15,000 (over 5 years) to spend THEIR $100k on that printer for me. Then I can invest that $100k of MINE into growing my business. If I play my cards right, I could turn that $100k into potentially $1,000,000 or more in new sales over the same time period.
One of those makes more sense than the other, to me anyway.
The stupid thing to do wold be to borrow someone else's money to buy equipment you have no need for, without investing in your company at the same time. I.E. living in a mobile home but driving a Ferrari because you could get approved for the loan.
Mosh
New Member
lease=rent so stop sugarcoating it. no way you perople can get around it. Ok rent your equipment, not many renters getting ahead in life are there? go ahead rent your equipment and see how that works out. no way you can spin paying outright is better that renting. period... good luck with paying rent, just save up and buy, then on those lean months that rent bill will not be there. what happens on those bad months when you do not have the payment? i am serious, just being honest here. sorry for the rant, just roll through any trailerpark and see what renting gets you!
klingsdesigns
New Member
I needed to lease to own to grow my business. Otherwise I would never grow where I want to. It's an investment it's not blowing it on stupid stuff. I hear you on having money before you buy. Sometimes in business you have to take out a loan or borrow money to get big jobs.
klingsdesigns
New Member
Also on slow months when money is tight you just make it work. You have too. I doubled my sales from leasing my printer.
rjssigns
Active Member
Tax wise it's about a wash between the two. A smart businessman once asked me this: "Do you want to own technology or leverage it"?
That being said I bought mine because lease terms were terrible at the time. Besides I got a new printer at a demo price. Rig had a couple hours on it.
That being said I bought mine because lease terms were terrible at the time. Besides I got a new printer at a demo price. Rig had a couple hours on it.