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Financing Alternatives

Now that you have decided on Associated Business Consultants as your technology partner, you have several choices on how to pay for your new computer equipment. Let's look at them. Cash... If your business can afford it, you might decide to purchase the equipment outright. That's fine, but it may deplete the financial resources that you could invest back into your business in more productive ways. Bank Loan... Again, a reasonable decision, but not necessarily a practical one. Although it preserves capital, a bank loan may impact your available credit. And, it will probably dip into your cash reserve because most banks do not offer 100% financing. Leasing... One of the best alternatives because it offers the following options: Leasing may lower the total cost of the equipment. Tax advantages often make leasing less expensive than outright purchase or bank financing because leasing may be accounted for as an operating expense. Leasing improves cash flow. Leasing allows you to pay for the equipment as you use it to generate income for your business. Leasing provides fixed rate financing. Your monthly lease payments do not change, variable bank rate loans frequently do. Leasing preserves available credit lines. You get the equipment you need now without tying up valuable credit lines and at the same time, you are establishing additional credit lines. Leasing conserves capital. Most businesses prefer to use their valuable capital as in investment in other aspects of their operation. Leasing keeps your business current. You don't have to worry about technological obsolescence when you lease because upgrades and other equipment can be added to the existing lease at any time if you qualify. Leasing is available in 12 to 60 month terms. The "True Lease" gives you the option to purchase at Fair Market Value, renew the lease or return the equipment with no further obligation at the conclusion of the lease. Today, more and more businesses are leasing the equipment they need. Leasing has become the nation's preferred way of financing business equipment. One other often overlooked advantage of leasing is that leasing may allow you to ugrade your purchase to get the equipment or software that is the best for your company, not what is the least cost or what you can afford on a cash or loan purchase. Profits result not from ownership but from the use of income producing equipment. Contact Us or Call Associated Business Consultants at (608) 258-8688 to find out how a leasing program may help you!

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rev 05/14/03		©2003 Associated Business Consultants, Inc.