Thursday, April 2, 2009

How Leasing can be Beneficial in a Weak Economy

Just when your business was beginning to take shape in a prosperous nation, a recession hits. Unstable times cause uncertainty. But that does not have to be true when leasing equipment. Leasing your equipment may be the solution your company needs to pull out strong in the economy.

Leasing equipment helps conserve your working capital. This means that you will preserve your capital for other day-to-day expenses like inventory and marketing. Working capital is vital to businesses and conversing it while expanding may be a great solution for you.

Leasing also builds company value. Because a lease is not considered a long-term debt or liability, it does not appear in your debt in your financial statements.

Leasing equipment allows you to keep up with new equipment. Leasing is fast and flexible, allowing you to keep up with industry standards.

First Star Capital is always eager to help with any questions you may have about leasing. Feel free to contact us whenever you need guidance.

Brad Harmon is the President at a leading financing company, First Star Capital (www.firststarcapital.com). Brad is a frequent contributor to online publications and newsletters, and is the author of this blog on commercial financing topics.

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