Posts From November, 2014

Why not defer?!? 

Posted by Rick Wednesday, November 5, 2014 9:42:00 AM

To defer or not to defer...that is the question, right?  Well, let's put this all into context for you.  We are now about halfway through the last quarter of the year and soon, budget money use will be in full swing.  Use it or lose it--at least that is the way that it was at one time.  But the rules have changed a bit and now people are hoping to add new equipment even if budget money for 2014 does not exist.  So, what to do about that new printer or copier that you have been putting off forever.  Luckily, we work with a few really great financial institutions that have some creative lease programs.  One of the programs that we have not used a whole lot but it is at our beck and call is the 'payment deferral plan'.  What a great idea for those companies that need it now but really cannot pay for it until fiscal year 2015!!  You can elect to take receipt of the equipment now in return for a 30-day, 60-day, 90-day or even up to a 120-day payment deferral payment plan...for just a mere few dollars per month added to the payment!

Leases are already a heaven-sent item when it comes to companies that are trying to preserve their capital, to be used for other pressing items in the company.  When dealing with equipment of any kind, why not set them up on a lease?  It really is a great way to preserve that much-needed capital and get the machines that you need to continue your everyday operations.  Leases have gotten a bad rap for many years, thanks in large part to the automobile industry.  Some of the horror stories that have eminated from car lessors would be enough to make anybody turn and run.  Now, that is not slamming the auto lease industry.  Many, many people are avid lessors of their automobiles and they truly love it.  You just have to know the "ins and outs" of the industry and fully understand the protocols that are in place when leasing a car.  The same holds true for machine leasing.  A well-educated customer is a good customer with great foresight into the corporate financials of his or her company.  Leasing does not have to be a scary thing at all.  The best thing to do is to ask a lot of questions when considering leasing, and I think in the end, you will find that folks that complain about leasing create much ado about nothing.  Always be observant of the "end of lease" terminology and what that means exactly to you , the consumer.

Always be cognizant of what is your responsibility at the end of any lease.  Lease companies are not banks, and thus they will ultimately charge a little bit more than what a bank normally would when using their financing structure.  However, lease companies are afforded some different rules of engagement because they are NOT banks, giving you, the customer, some tax advantages that you normally would not have otherwise.  Speaking to your tax professional will uncover a whole lot of those tax advantages, I am sure.

A friend of mine once said, "You can't be scared."  Now, truth be known, he was not standing at the edge of the Grand Canyon or gargling gasoline while playing with matches, but the boldness of his few words of wisdom ring true today.  You really cannot be scared of things that you may not know a whole lot about.  Asking pointed questions will alleviate much of that fright and you will then be able to concentrate on what you need to achieve in the end.  Heck, you read this whole diatribe and only lost a few minutes of your life, but hopefully, you will have learned a very valuable lesson in life...never be scared.