The inherent risk in equipment financing is often under appreciated by enterprises as they conduct a lease vs. buy analysis, as well as when they compare lessors.
The inherent risk in equipment financing is often under appreciated by enterprises as they conduct a lease vs. buy analysis, as well as when they compare lessors.
Topics: Fair Market Value, Lease Agreements, interim rent, end of lease notice, Equipment Financing, equipment return, lease schedules
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
Learn why almost everything you know about equipment leasing is wrong.
