LPRS Blog: Leasing911

Leasing commercial equipment is often the most cost-efficient equipment procurement method for enterprises. But commercial equipment lease agreements are complex documents—full of terms which generate material risks that enterprises that lack experience in commercial equipment leasing often accept.

Topics: commercial equipment

To decide the best way to pay for equipment, it’s essential for enterprises to perform a detailed lease vs buy analysis, comparing the cost to buy now against the future costs of leasing.

Topics: Equipment Leasing, Lease vs Buy, financial services

Equipment leasing is an attractive equipment-procurement option for many enterprises for numerous reasons, including reduction of upfront cost, improved cash flow management, and elimination of equipment ownership risk.

Topics: Equipment Leasing, Equipment Lease, Equipment Financing

Faced with rapidly evolving, always-changing health care technology—as well as financial pressures such as squeezed margins, low investment yield, and tightened credit —many hospitals that belong to the HFMA are relying more than ever on equipment leasing.

Topics: Fair Market Value, Equipment Leasing, Lease Agreement, hfma, Lease vs Buy, end of lease options, Hospitals, Lease Accounting Updates

Many CFOs and other financial managers have bought into the asset finance philosophy that equipment leasing supports a prudent asset refresh strategy.

Particularly with information technology, equipment obsolescence can be a problem because of short asset life cycles, typicall no more than three years. When equipment is purchased, the cost is capitalized, and depreciation expense can linger after obsolescence. When it is leased, so the theory goes, this threat of obsolescence before the equipment is “paid for” is eliminated.

Topics: equipment return, asset finance, equipment refresh

Corporate financial professionals love the predictability of equipment leasing. By leasing, the cost of the equipment can be can spread over a fixed period with set lease payments. By exchanging the relatively unpredictable cash flow of equipment ownership for unchanging lease costs, cash flow forecasting can be more reliable and more easily formulated.

Topics: Equipment Leasing, financial services, end of lease options, interim rent

When leasing is used for business equipment financing, there’s the potential for cost savings, as well as some accounting and tax benefits. But the price to businesses for this potential value is the assumption of a considerable amount of risk.

Topics: business equipment financing

For many enterprises, leasing is an attractive option for procuring necessary commercial equipment. When comparing a lease vs purchase, leasing can be enticing because it offers the potential for some substantial benefits, including:

Topics: Lease vs Buy, lease versus buy, lease vs buy analysis, lease vs purchase

Many financial managers are attracted to IT equipment leasing because it can potentially result in lower-cost procurement, while keeping the cost off the balance sheet. They also may believe that leasing minimizes the risk of technical obsolescence.

Topics: technology leasing, Computer Leasing, Computer Equipment Leasing, it equipment leasing

For organizations that lease equipment, it is imperative to accurately measure the financial performance of these equipment leases, including any costs in addition to regular term rent that  are incurred over the lease lifecycle.

Topics: Equipment Leasing, office equipment leasing, equipment lease analysis