Leasing: fast cash and low outlay
Leasing, a medium and extended-term financing method, is a fast simple means of acquisition that should be considered. Other methods include the traditional equity or debt financing, or purchase from funds provided by operations. In a lease arrangement, the lessor owns the equipment. The lessee chooses the equipment and has unrestricted use of it. Lease packages vary, with differences based on pricing and accounting practices and the company's short and long-term equipment needs. When a basic lease expires, the lessee may return the equipment, buy it, renew the lease, or lease new equipment. The idea behind leasing is to make money by using the equipment rather than owning it, then using the difference for income growth opportunities. A leasing organization should be able to offer custom-designed contracts that include the client's views, overall company strategy and business objectives.
- OSTI ID:
- 7305684
- Journal Information:
- Coal Age; (United States), Journal Name: Coal Age; (United States) Vol. 82:5; ISSN COAAA
- Country of Publication:
- United States
- Language:
- English
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