Given the current economic climate, it would be a good idea to revisit the "buy or lease" options for some of your capital expenditures such as equipment and trucks. The extra leverage the economy gives lessors today makes leasing a better option!

Leasing offers benefits. From a tax perspective, leased equipment is considered a cost of business to be expensed in the current year. The most attractive part of leasing is having use of new equipment without buying its full value. As an added bonus, you may be able to acquire a higher quality piece of equipment for the money than if you purchased it outright. Leasing also offers fast access. After a few signatures, equipment is delivered without large down payments. For fast-growing companies where cash is tight, leasing provides the way to expand quickly to meet customer demands.

As for Franchise business leasing, there has never been a better time for businesses to make leasing an option if they have the need and, in your company's situation, have less than the desired amount of cash assets. Interest rates are at or near historic lows. In addition, a weak economy has forced businesses to offer leasing price reductions to keep inventory moving.

Also consider that, if inflation occurs, as it is expected, rates and material costs will increase. That means your lease today will end up being a bargain a year of two from now.

LEASE VS. BORROWING