Start Here October '20

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S T A R T H E R E 2 0 2 0 FINANCING Pros: • No term buyout • The customer legally owns the equip- ment (with a UCC-1 Lien) • Can report as an asset and liability • Ability to preserve cash on hand • The customer can write off entire equipment cost in the year of pur- chase (if income offsets it) Cons: • Monthly payments can be 10–15% higher • The customer is liable for any injury, damage to property, etc. LEASING Pros: • Lower payment due to end-of-term balloon payment (typically 10% of original equipment cost) • The customer is not liable for any legal issues • More flexibility at the end of the term (walk away, upgrade, or purchase) • Payments are completely tax-deductible Cons: • End of term buyout • The lessor is the owner of the equipment Financing A Pros & Cons List: Financing experts from Ascentium Capital, CIT, and Geneva Capital weigh the good and the bad. 80

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