Data Management

Cash Flow And Leasing

Date Added: Mar 2010
Format: HTML

One of the most common pieces of advice given on business management websites when it comes to cash flow discussions is to lease your equipment. The argument in favor of leasing is straightforward: the month-to-month cost for leasing equipment is substantially lower than buying it. There's one key problem with this argument, though: leases put you into a never-ending cycle of payments, meaning that they are a somewhat smaller but never-ending drain on your monthly cash flow.