About Equipment Leasing :: Homecoast Capital

"If it appreciates, buy it. If it depreciates or becomes obsolete, lease it."

Equipment leasing is basically a loan in which the lender buys and owns equipment and then "rents" it to a business at a flat monthly rate for a specified number of months. Many businesses prefer leasing over buying because of its cash flow advantages, as well as tax deductibility, protection against obsolescence, efficiency, flexibility and more. These businesses also understand the principle of investing in appreciating or at the very least stable assets, rather than investing precious working capital in depreciating assets, such as equipment.

Equipment Leasing and Financing Association (ELFA) research shows that eight out of ten U.S. companies lease some or all of their equipment. And, nine out of ten say that they will use equipment leasing again. Of all the ways to acquire equipment, leasing is the method most frequently used for all equipment types. In fact, almost any type of equipment can be leased, from fax machines and printing presses, to trucks and bulldozers.