PowerPoint Presentation (PDF) - Associated Builders and Contractors
PowerPoint Presentation (PDF) - Associated Builders and Contractors
PowerPoint Presentation (PDF) - Associated Builders and Contractors
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Purchase vs. LeaseEQUIPMENT LEASING:Advantages:• Minimal initial expenditure<strong>and</strong> impact on cash flow• Easier to obtain• Flexible terms <strong>and</strong> conditions• Balance sheet impact / ratiosDisadvantages• Higher overall cost• Lack of ownershipEQUIPMENT PURCHASEAdvantages:• Ownership• Tax incentives – Section 179or Bonus DepreciationDisadvantages• Ownership –risk ofobsolescence or utilization• Impact on cash flows <strong>and</strong>borrowing capacitySuggestion: Have a defined <strong>and</strong> processin place to evaluate whether purchase <strong>and</strong>financing is appropriate
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