 |
Conserve
Capital: “Cash is King.” Save
it for other uses. The average cost of funds for
a company using its own cash is 12% |
 |
Conserve
Credit: No compensating balances required,
no loan covenants violated. |
 |
Financial
Statements: An Operating Lease appears as
a footnote on a financial statement, not on the
balance sheet.
|
 |
Expect Fixed
Payments: Accounting for the payments is
simple. No surprises as with a variable rate loan.
|
 |
Extras:
Lease packages can include more than the equipment
cost (e.g., system upgrades, operator training,
spare parts, start-up supplies, etc.) |
 |
Cash Flow:
“Step” and “Skip” payments
can be arranged to compensate for seasonal fluctuations
in business cycle. |
 |
NO OBSOLESCENCE
WORRIES: Always be using State-of-the-Art
equipment. |
