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In today’s rapidly changing business environment many "Leasing is for companies who can’t afford to do business in cash," said the CFO. "Why should I pay a fee to use someone else’s money when we have plenty of our own?" Our question to the CFO was: "Why waste cash on assets that may quickly become obsolete and could be losing value for your business the minute you turn on the switch?" Leasing companies sometimes make the mistake of dazzling clients with their ability to create elaborate and complex leasing solutions that, frankly clients just don’t understand and don’t trust, leading to skepticism about leasing. The truth is that leasing is not as complex as you might think and if you remove all the jargon, there are really three basic types of leases: ■ True Lease/Tax Oriented Lease • Types of Leases - more information More questions? Special circumstances? |
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companies are looking for alternative ways to fund equipment purchases. Leasing has become a popular equipment financing option, but a recent discussion with the CFO of a very large semiconductor manufacturer points out that there are still some skeptics when it comes to leasing.