Saturday, April 18, 2015

What are the risks of leasing versus buying office equipment?

What are the risks of leasing versus buying office equipment?
Lease vs. Buy of Equipment Here is a great article from Cisco regarding leasing vs. buying of equipment: http://www.cisco.com/web/about/ac123/iqmagazine/archives/q4_2004/departments/net_strategies/financing.htmlUnfortunately, the above page is no longer available.Here's a quick comparision:Leasing = a non-cancelable contract over a fixed term 100% Financing Conserves Working Capital May lessen tax liability Hedges against inflation Matches the cost with the benefit of use over timeBuying = cash purchase No finance charges Direct ownership Allows you to take depreciation on your tax return

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