Spring Hill, FL -- (SBWIRE) -- 03/15/2012 -- Richard D. Reichmann author and president of Abba Equipment Leasing and J Paul Getty both agree that “If it appreciate in value buy it. If it depreciates in value lease it”. This is as sound of business advise as it was during Getty’s lifetime.
Equipment leasing is an important industry, having grossed $218 billion dollars in 2004. It evolved from a “last resort” financing option to one which vendors in any industry may take advantage of, from high-tech industries to construction companies.
Many companies use leasing as a primary method of financing their equipment. About 85% of businesses in America today lease equipment, and with continued advancements in the financial market the equipment leasing industry continues to rise.
Make sure that the leasing company caters to businesses in a niche where you belong. If you own a new business or a start-up business, look for a lessor that offers special lease programs for new and start-up businesses.
Remember each time a finance company pulls your credit, your credit score will drop. Even if you are an established business hoping to be approved for an equipment lease in your business name only, many finance companies will still want to see the owners credit before approving a “corp only” lease.
In recent times, equipment leasing has become on of the most viable options for acquiring equipment for any businesses. Whether it is an established firm or a new business, everyone prefers to lease some or all of their business equipment.
Business owners often find that they need to add new equipment and often choose the leasing option. Over 83% of business owner lease some type of equipment during their time in business.