Do Any Shop Owners Lease Equipment?
Business By CakesbyM_LC Updated 20 Aug 2007 , 6:54pm by indydebi
I am looking to start my shop soon and considering leasing equipment until I know exactly what I want and also until I know if I am going to be able to stay open...is anyone else leasing or have leased their equipment first? Any thoughts?
we looked into that option, but you still have to go thru the same credit worthiness standard as if you were buying it. Plus you then have nothing on the asset side of the balance sheet and you have this payment committment on the liability side. It's easier to lease a car than it is to lease equipment. Also if you are doing it with a bank loan/line of credit, your bank will probably want to ok the lease and they are not a fan of this plan .... if you use their money to pay the lease, then since you dont' own anything, the bank has nothing to attach the lein to. If you are buying the equipment, the bank can lein the equipment in case you default.
Quote by @%username% on %date%
%body%