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Lease Or Buy |
Dear Dave Dear ET Having said that, leasing sometimes is a viable consideration as it can provide an additional source of capital without cutting into the amount of money you might otherwise be capable of borrowing from your bank for other company financing needs. On the downside, leasing is often more expensive than a conventional bank loan as the leasing company will usually assume items like computers and field equipment will have no residual value by the end of the lease. Therefore, your lease payments will be high enough and long enough to capture 100% of the cost of the item plus interest and other leasing fees making it similar to a bank loan albeit you would not need to come up with the down payment a bank may require as a condition of any loan. |
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