Why has leasing industrial equipment revolutionized the industry?
The answer to this question can be answered in one word, advantages.
Leasing provides advantages to the customer, and the dealership.
- Leasing converts a major capital expenditure into an easy-to-budget
operating expense.
- Leasing requires fewer capital dollars than many other methods of financing.
Customers have to provide two (2) advance monthly payments to enter into an
equipment lease. Other financing methods could require a 20% to 30% down payment.
Furthermore, the customer will have to withdraw a large portion of working capital
from the bank. This ties up precious working capital. Leasing allows the customer
to keep his bank lines open thus increasing his borrowing capacity for other important
investments. Keep in mind, this capital is tied up for a long period of time.
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