Why Finance?
"IF IT APPRECIATES IN VALUE, BUY IT. IF IT DEPRECIATES, THEN LEASE IT."
Most companies can't take advantage of every opportunity that presents itself, given limited financial resources and cash flow. Financing allows businesses to take on additional opportunities, while managing cash flow and conserving capital for expenses that cannot be leased--i.e. employee salaries, tenant improvements, marketing, etc. When a company acquires a piece of equipment or a working capital line it does not bring them profits immediately -- but over time. Why then should a company pay for equipment up front when it makes much better financial sense to make a small monthly payment over time?
Los Angeles
