September 13th, 2011 11:58am - Posted By: Jonathan Braun
Equipment Acquisitions - Leasing vs. Buying
Whether you have a start-up business or an established operation, the need to acquire new equipment is sure to arise from time-to-time. The decision of how to finance that acquisition will depend upon a variety of considerations, your company’s financial condition and your personal business philosophy.
Traditional Financing – A traditional loan amortizes the acquisition cost of the equipment (principal) over a fixed period, adding interest at a fixed or variable rate. Traditional financing often requires a down payment, title to the equipment passes to the purchaser at the time of purchase (although it will usually be subject to a security interest granted to the financing source), and typica ...
Posted in: Finance
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